i just made an eff yesterday. just make a text file containing this:
$Type: DDS
$Frames: 3
$FPS: 15
then save the file with an .eff extension. then you need your frame names to have the same name as your eff followed by an underscore and a 4 digit number. for example you have a 3 frame animation called "fire" your eff would be named fire.eff, and your frames would be fire_0000.dds, fire_0001.dds, fire_0002.dds. be sure frames has the total number of frames in the ani, and that type matches the extension of the image format youre using. mipmapped dxt1 works best.