1) Open the picture you want to animate and then copy and paste the image into a new document with a Transparent Layer. I will explain later what this does but it is a very important step.
2) Duplicate the layer of the image:

3) Change the opacity of the layer that you duplicated to 50%:

4) Click the little arrow in the Animation panel and then click Make Frames From Layers. If you cannot see the Animation panel then click Window > Animation.

5) Select the 2nd frame in pallete and click the Tween button. Before doing this, make sure when you have selected the 2nd frame in the Animation panel, only the 2nd layer in the Layer Pallete should have a eye on the left side of it and when you have selected the 1st frame in the animation panel, only the original layer should have an eye on its left. Any additional eyes, just click them to take them away. Eyes = Layer Visible:

6) When the tween screen pops up after you have clicked the tween button, apply these settings then click ok:

7) Click the last layer in the Animation Panel(should be 7th) and then click the arrow and click New Layer as in the screenshot below:

Make sure that when you clicked the frame you just made, only the first layer is visible:

8) Click the tween button on the newly created frame in the Animation Panel and do the settings below. And then click Ok:

9) Make the delay of every layer 0.2 Seconds:

You can end the tutorial here or carry on to Step 10. End it here by clicking File > Save Optimized As and then choosen .gif as the type. If there is no .gif there then you didn't paste the image into a new layer which means you probably will have to do this again.
10) Now, duplicate the layer that was duplicated before and move the new layer to the top in the layers pallete.Make sure that the Opacity of the new layer is 100%. Create a new frame in the Animations Pallete. Make sure that the new layer is the only visible in the Layers Pallete when you select the Frame you just made in the Animations Pallete.
11) Press Control + T and resize the layer to the middle like the screenshot below:

12) Tween the frame with the previous frame using the same old settings.
13) Create a new Frame, make Layer 1 visible on it and click the Tween button using the same settings like you've used before.
14) File > Save Optimized As and choose .gif as type then save it.
There you go, you've got a full finished simple animated product now.
This is what I got:

Author:Mr.A
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