There are dozens of tools, pro and free which You can use for animation. It largely depends what kind of animation You´d be creating.
Simple ones can be done by extracting video selection to images (avidemux, virtualdub), Load as layers, edit and save as gif animation (Gimp for example).
That´s just one method. Check the sticky post first, there are some less or more detailed tutorials. And google is full of them.
vixy.net does not work anymore. Youtube videos can be converted in savevid.com