1. open kmplayer and load your video
2. press ctrl + g ( this allows you to capture frames from your video )
Here are the settings :
Click on start and continue till you have captured the part of the video you want to gif.
3. After you have captured the frames open Photoshop ( i use CS3 ). Then go to *File* - *Scripts* - *Load files into Stack*
4. Follow the steps below :
After clicking on *Browse* you can go to the folder where the frames have been saved and select them and load them.
5. After the files have been loaded then do the following : (make sure you have the animation bar ticked in photoshop)
6. By doing so you basically have your gif ready, but you must keep the gif size till 1 mb. So delete some frames ,add psds, colour, do whatever you need to make it look better.
7. For saving you gif, go to *File* - *Save for web and devices*
Here are the settings you require :
YOUR GIF IS DONE! :D