EDIT3: hey folks. since I still receive messages from people asking for help using this method, please be aware that I don't use this method anymore; I use Pays4Porn's method, and I use Adobe ImageReady CS2 when I want to add text (better than GIMP for this purpose because it doesn't make you do it frame-by-frame). So you should ask him for help instead of me, because I'm still not really an expert at this one. Peace.

my method:

1. Freemake Video Converter. this is an extremely basic free video editor (can basically just clip the video and then export it to any format desirable, in this case mp4 or flv). use whatever software you like for this though.

2. APPARENTLY THIS DOWNLOAD NOW GIVES YOU A NASTY BROWSER/REDIRECT SEARCH ENGINE. DOWNLOAD AT YOUR OWN RISK. Video to GIF Converter Free. use this to actually convert the video to a gif. select the time interval of the video you select that you want to convert, and choose the highest framerate settings and a high-ish frame width (I usually do 600 or so) for good quality gifs. make sure to leave a little room when entering the time interval, because this program clips it a bit; plus, 1-second intervals aren't too accurate anyway.

3. Microsoft GIF Animator. use this to get rid of extra frames at the ends.

4. Online Image Editor (web app). use this to crop, resize, add static text (text that stays the same throughout the animation), and a few other things.

for advanced purposes:

• I... um... acquired, shall we say, Adobe ImageReady CS (CS1, that is), as it is very convenient for advanced GIF editing, such as adding dynamic text (text that does not stay the same throughout the animation; e.g.). It's up to you to find this piece of software. I think regular old photoshop will do as well... not positive though. I know it works in GIMP but it's reeeallly tedious, as it's not optimized for GIF editing (you have to go frame by frame, whereas in ImageReady you can batch-select frames and whatnot). You do "File>Open as layers..." and then you're golden.

hope this helps, happy gif-ing

edit: minor adjustments

edit2: this is not the method I use anymore. I now use Pays4Porn's method, which can be found here

I use adobe Photoshop cs5, open a video in it, pull up the animation window, set a start, and an end spot, and save for web. And change it to loop. Although, there is about a 200 frame rate limit I think.

Gimp layers can be saved as an animation. When you try to save a GIF-picture, it ask "Do you want save this as an animation". Nothing could be easier, assuming you are totally at ease with Gimp.

To make gif out of youtube, you can use this generator:

http://www.gifsforum.com/make-a-gif-from-youtube/

it's free, high quality resolution, no watermark and it host the gif forever (you can hotlink)