I tried to upload a GIF to a test blog and had similar results in that all I got was a static image. One solution I was able to come up with was using the template modification for adding gadgets and widgets to your blog header.
After that I uploaded a GIF to the photo hosting site Photobucket and copied the "HTML code" option and pasted it into the "HTML/JavaScript" element under "Add a Gadget" that now appears in your header. Saved it and I was done.
Another option you have here is instead of copying the "HTML code" from a image hosting site like Photobucket you can use the "Direct link" code they provide.
<img src="Your Direct Link Code Here" alt="">
Paste this line of code into the "HTML/JavaScript" element under "Add a Gadget" in your header. Don't forget about the ALT attributes and your photos if you'd like your images to be more search engine and browser friendly.
Note:
Don't forget to back up and save your template and or try this on a test blog first.
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