I tinkered with this recently. Here are my findings (as best I recall):
Animation in Mala is limited to repeatedly scrolling a picture up, down, left, or right.
The picture must be the same size as the layout.
You can have up to 4 images moving.
Speed is adjustable.
If you want an object moving accross the bottom, you'd make an image the size of the background with the object at the bottom and the rest transparent (or any color, as Mala will make anything that is the same color as the upper leftmost pixel transparent IIRC.)
For example, if you want a UFO flying accross the top, you'd make a picture the size of your background image with a UFO at the top and the rest blank.
Then, in Mala layout editor, you'd add the animation to the elements you're including and it will put a little box in the corner.
Double click on that and you will be able to choose the path to your picture, and the direction, speed, etc.
Mala can display one GIF per playout.
It must be displayed using the Video2 window.
Add the window to your layout, double click on it, and set the path to the GIF.
This window can be resized and positioned wherever you want.
Mala will adjust the size of the GIF accordingly.
THIS DOES NOT WORK IN WINDOWS 7, AS THE ABILITY TO ANIMATE GIFs IN WINDOWS PICTURE VIEWER WAS REMOVED.
Another option is to use the Video2 window to loop a video.

This window can also be resized and repositiond and Mala will adjust the video accordingly.
You could have a video the entire size of the background looping.
EDIT: Not sure about the layering implications with a video running in the background.
I know the gamelist will stay on top of it, but not sure about other elements.