Hi Arnold,
It should be either a TGA or PNG sequence with Alpha channel, in the same pixel format as the production standard. Best to create a directory for each animation to avoid confusion.
You should be able to see the animation in the media manager, but for transitions you need to load it from the media transition menu on the panel or use the dashboard LiveAssist menu and assign each animation a slot by putting in it's media ID number (which you can see in the panel menu or the media manager).
#Carbonite