Using Premade Animations (like those at CDO):

Prepare your work area for animation.

I am going to assume you have your tag created and a background already on it. (plain white or black in most cases).

Video tutorial is also located at the end.

There are a few things you really need to pay attention to in this tutorial. Frames are in the animation window. Layers are in the Layers pallet. Layers in the animation are named Frame 1 - Frame 25. These are LAYERS, not actual Frames.

Here is the tag I am going to animate:

I am going to use this animation on the tag: (link no longer active)
Here are some other animations to use:   http://www.cdoestore.com/index.php?p=catalog&parent=842&pg=1

Open the animation that you have purchased.

Once you have it opened:
Select > All Layers
Layer > Group Layers

In the layers pallet, right click on the group (indicated by a folder icon) and Duplicate Group.

Don't hit ok
Find the name of your tag in the drop down box in the popup window first.

And THEN hit ok.
You can now close this animation without saving.

Back to your tag.

Tip This part is optional, just in case you want any dark color removed from your animation. Highlight the group and look at the top of your layers pallet. There is a dropdown box that has the word "Pass Through" in it. Click on that box and choose Linear Dodge.

You can now move the group anywhere you want using the Move tool.

Now comes the fun part...

Make sure the group is open (click the arrow beside the folder icon to "open" the folder)

You need to make a new frame for each of the animation's layers.
This will take a minute or two, so you may as well go have lunch or a cup of coffee before you get started.

You have your animation window open, right? (Main Menu: Window > Animation [or Timeline, in newer versions])

You already have your first frame already there.

Duplicate the frame by clicking on the folded paper icon at the bottom of your animation window.

At this point, you are going to need to pay close attention, since the layers are named "frames".

In the LAYERS pallet:
Hide the "Frame 1"   layer   in your group and unhide the "Frame 2"   layer .

In the ANIMATION window (or timeline):
Duplicate this   frame .
Hide the Frame 2   layer   and unhide the Frame 3   layer .

Repeat this for ALL the Frame layers.

This will make 25 frames in your animation (if you used one of mine). One animation layer per frame.
If you would like less frames, simply delete the odd frames in your animation window. (CTRL + click on every odd frame)

See Animation Tips:  

Set your frame delay to 0.1 sec.

Now to save your animation.

Tip Here is a video tutorial also, for those of you that do better with seeing it for yourself. I already have everything open. and I am assuming you have somewhat working knowledge of Photoshop before starting any kind of animation.