The animation of a .gif will stop on PostBack with Internet Explorer. The problem is inherent to Internet Explorer. Apparently this issue goes all the way back to IE 6 (though I've only confirmed it in IE8).
There is a little hack around it, and that's by updating it's source with a setTimeout
function UpdateImg(ctrl) {
var img = document.getElementById(ctrl);
img.src = img.src;
}
setTimeout(function() { UpdateImg('image1'); }, 50);
You could also use jQuery to animate a graphic. This works in IE, but now I notice that Chrome doesn't work all the way through the animations on PostBack. There's always something isn't there? ... :(