1. Open the image you want to use.
Choose your bg colour & fg colour.
Click on preset shape, choose square, vector check.
Draw your square & convert to raster layer.
Duplicate your blocks, I have mine 6.
Change your colour of your choosing,
Add new layer, name it blinkie
Paint around your square.
Add new layer, type your name or nick.

2. Turn off blinkie layer, merge all layers visible.
Duplicate blinkie, float and fill with white.
Hide the duplicate blinkie & merge the rest.
Duplicate 7x & name them if you wish.
Click on 1 and leave the very first & erase the whole lot.

Repeat up to layer 7.

3. Hide all layer except merge, save as 1.
Unhide layer #1, merge visible, save 2.
Keep repeating up to you have save 8.

4. Open animation shop, click on animation wizard.
Tick, same size as the first image frame. NEXT
TiCk, transparent, NEXT
Tick, upper left corner, tick with the canvas colour, NEXT
Tick, Yes, repeat the animation,

Next, add image,

Next,finish, view, animation.
Save as gif. You are done!

Marie has a similar tutorial on her site HERE.
The animation is slightly different.