Adding GIF files
1) Go to the ADD NEW PICTURE button.  Fill in the boxes as necessary for this new material.  
2) Go to the bottom of the screen and click on the IMAGE tab.  Upload the first frame of your GIF here.  
3) Go to the CONTENT tab.  On the far right side, notice the INSERT/EDIT IMAGE button. It's just to the left of the "?" button on the far right. Click on the INSERT/EDIT image button. 
This new screen appears:

4) On the far right side, near the middle of the page is the UPLOAD button.  CLICK there. 
5) The upload screen appears.  This new screen appears: 

6)In the bottom right corner is the upload button, click there.  You can also "drag and drop" the your GIF file into the proper area. 
7) This takes you back to the IMAGE MANAGER EXTENDED screen.  The pane in the bottom center of this screen shows all the images.  Scroll for your newly uploaded image.  Your image WILL NOT be under the GIF file folder. Click on the box to the left of the name.  Then click on insert at the bottom right of this screen.  
8) You'll be taken back to the K2 screen for uploading new material.  Your GIF file should be CONTENT tab.  You can add any descriptions or story material you wish here.  
9) Click on SAVE in the upper right corner to save this new material.  Then click on CLOSE to exit this screen.