I've enlarged this picture so you can see it better. Then you add a border (this is done within the same canvas, don't go outside this size or the finished blinkie will be bigger)I've used contrasting colours (pink and black) and each little square is 2 pixels. In the same square I added a name - this blinkie is for Candace, so I put her name. Now save your first picture "blinkie1" as a .gif file.
Blinkies are made up of different frames, like a flip book, so this is your first frame. The second frame is the same as above only you change the border slightly. In the top left corner of the blinkie above, I started with a pink square, for the second frame we will start with a black square and then go pink, black, pink, black etc.
So using the same blinkie you saved above, now save it as "blinkie2" and change the border. I say save it now, because if you accidentally save the second blinkie, it will save over your original picture and you will be back at square one.
Here is what your second blinkie will look like:
Can you see the difference in the border from the one we did earlier to this one? Okay, so now you have your two blinkies - you can now use the wizard in Animation shop and go ahead and make your blinkie move! Here's your finished blinkie: