I actually figured it out on my own yesterday(applauds were given to those that actually tried to help) and put it all together in about an hour or 2 as I'm still learning how to use GIMP.
Here are the programs I used and it was very quick and easy:
1 Click YouTube Downloader (Firefox ext.)
-which let me save the 1080p version of the video in 1 click and only took seconds to d/l
Avidemux
-which let me cut the video down to the size I wanted and then save it in individual frames so I could whittle it down further
GIMP
-which let me put the frames I needed back together, crop, resize and add text to save them as individual frames again.
VFTEdit
-Which let me save the file as a .vft so I could use it in my game (must be 256x256 and 120kb or less)
But here is my finished result for the project I was working on
(in .gif format even though tinypic say .jpg)
