Think like an avatar. I'm think of an avatar that has a picture then its all blank, then it spells something out. How do I do that?

Do you have an animation program? It's necessary to achieve that effect.

Yea, you need an animation program like Animation Shop. Basically all you have to do are three frames: the first one is the picture, the second is blank, and the third one the text. Then you have to animate it...

Where do I get the animation programe?

Here's a free trial of Jasc Animation Shop:

http://www.corel.com/servlet/Satellite?pagename=Corel3/Trials/Login&pid=1047024390003&cid=1047024443276

gimp has got an animation package that you can try?

I would like to suggest a free program (designed for linux but runs alright on windows) called The Gimp. It is quite hard to learn, but makes effective animation. It is what I use. You don't need the additonal package. You animate using different layers then save as an animation.

http://www.gimp.org/

If you can master how to download it, you shouldn't have too much problem using it.