.gif files are comressed imagage files as you may know. gif
files are only used for simple graphics and logos they do not use
any colours. jpegs are better for what you want because they can
handle the colours in your swf file.
i know this answer is slightly vauge im no expert myself but
i do know your gif version is like that because its converting it
to a very basic file and the amount of colour in it means it can
not handle it. i dont know if you can get a animatied jpeg file or
not. tho someone here may be able to to answer that and give a more
detailed answer to mine.
hey mmccaffery, yeah im aware of th compression in .gif
but in the publish settings i tried every color option there,
including adoptive, and to my surprise they all look the same.
and besides, as far as i know, i only used Web Safe colors
for that picture, so compressing it shouldnt be a problem..
ahh well, i guess this is just another thing i cant figure
out at the moment.. the list is getting quite long now.