Create Animated Sprays in Team Fortress 2 and Counter-Strike
3: Conversion, conversion, conversion

VTFEdit's import process asks you all sorts of scary questions. Fortunately, you can just skip over them by pressing OK.
Now that all your images are properly sized, you're almost ready to create the spray. Open up VTFEdit, and go to File -> Import. Control-click each of the images you want to use, and click OK. Select the default options on the Import screen, and wait while your images are converted. To get an insanely high-speed preview of your spray, you can go to the Image tab and press Play. If everything looks right, you can go to the Info tab and make sure that the overall size of the spray is less than 120KB. Then save the file in c:/Program Files/Steam/steamapps/<your username>/team fortress 2/tf/materials/VGUI/logos for Team Fortress 2, or your c:/Program Files/Steam/steamapps/<your username>/counter-strike source/cstrike/materials/VGUI/logos folder. Once you've saved the file, go to the Tools menu and click Create VMT file, then save the resulting file to the same folder.
4: Enjoy!

All done! Mom would be proud if she knew the first thing about PC gaming. Or lolcats.
Now, your files should be in order, iand you can fire up your game and enjoy your handiwork. From the game's main menu, go to the options menu, and select the Multiplayer tab. Your new spray should be available in the drop-down list, for you to select. Before you venture into the wilds of the Internet, you'll want to test your spray in a private place, so why not create a server all your own, and make sure it works properly there. If you make adjustments to the spray, you'll need to disconnect and reconnect to the server in order to see any changes. Once you're happy with the way things are working, fire up your game and get spraying!
Not Feeling Animated?
Don’t sweat it! Stop yourself after you’ve cut out your picture and save it as a targa (.tga) Size doesn’t matter, so just place it somewhere that it’ll be found easily and import it from Counter-Strike: Source or Team Fotress 2’s in game menu.