You cannot animate a bitmap (which is what a JPG file is). You can only animate a vector object (e.g. font characters or imported vectors like WMF or XAR files) and then texture map that bitmap JPG file onto it - this is how I created the animation above from your original bitmap. To create or edit vector objects I would recommend none other than Xara Xtreme as it allows you to copy and paste shapes directly from Xtreme into X3D. And also it is the dog's danglies at loads of other stuff as well making you far less dependent on Photoshop.