bitmap *.bmp file, you can animate it that way ... read up in the manual about sprites. also for a charcter you will need many *.bmp file one for walk one for stand one for each attack ectt... But I still don't have a clear idea what kind of game you are trying to make is it like a top down 2d zelda ??? can you give us some referance for your style? Y not 3d? whynot cell shading?

Malcie