Using the gd library, can one make an animated gif?
I read somewhere how someone created an animation using php and the exec function, then saved it as a gif, put it in a temp directory, and moved it from there to a local directory so it wouldn't get destroyed.
Unfortunately, I can't use the exec function because it's not allowed on my webhost. 
Is there an alternative way to create animated gifs using php?
Yes you can use the gif encoder class. I can't actually find it at the moment because my internet is being really slow and sais google isn't responding. This is the only site that works!
But sign up here and then search for it and you will be able to download the class and also an example file which will get you on your way.
I made this using the gif class.
I have found an error in the class which I have had not found a way to fix though in that if you set it to loop only once then it will loop twice, if you set it too two three times and if you set it to zero it loops unlimited times. If anyone finds a way to fix this I would be very happy! Please pm me!
Gif Clock which I made. Changes every minute but loops over the same hour twice!
http://www.dougs-site.frih.net/Gif%20Clock.php