Animations Question

I've been trying to put sakura animations using this tutorial on an icon. My end result was the still below, while the real version is the actual animation. The only reason it's working is because a friend of mine put the psd file into animation shop, but said it was all working correctly. So I'm wondering why it's not working in ImageReady and how I can fix it? I run Photoshop CS2 and ImageReady.

error:

correct: