ok so as you can see from my sig below, i cant seem to make cloud that is out of box smooth it looks real pixely and i did a perfect job cropping him. is there a specific way to save it to help with this?

after cropping, did u save is as png?

nah i saved as 128 dithered gif, you can save as png and it still have animation?

png animation. i think u can. but i don't remember trying it yet. i should try it when i get home.