I was wondering if DC would display animated gifs. It's good to know it will. I don't think any of the picture formats used support color cycling, though, do they?
Oops. I missed this until Dinonykos pointed it out.
DC does not support the GIF format. If it did, that might be an (relatively) easy way to solve the request for animating walls and backdrops. And you are correct, none of the supported formats utilize color cycling (because they don't have fixed palettes by default).
However, you can animate small pics in DC. You just add frames on the right hand side of the first one and when you import the art you let DC know how many frames there are. This works the same way as sprites do in DC (but without the transparency). The drawback to this method is file size for complex animations.
Actually, the f/x in the game - for spells, items, etc. works the same way, and quite a bit of the art done by folks utilizes 8 or more frames instead of just 2 like in FRUA.
You can get some really cool f/x this way.