To make your screen name animate on your friends buddy list, you need to download the following program:

AIM Screen Name Animator

Extract that program somewhere on to your computer and then run it while you have AIM open:

It will recognize the screen name you are logged in with and display your current screen name format.  Now choose the animation sequence you want to use and then click "Start" to begin the animation of your screen name, click "Stop" when you want to stop it.  Add your own screen name to your buddy list and then run the animation to see what it looks like, you may have to turn the speed down in order for some animations to work.  Speed 1 seems to work well with all the animations.