animation frames

http://img248.imageshack.us/img248/2166/4zdwqx41hr4.gif

how would i go about making the frames like this ? sort of like, fading out to a different one..?
help is appreciated. (:

i use PS7 & Imageready.

http://riot.nu/categories/Total/rene_02.jpg

& where can I get those circle brushes ?