Well, I just figured it all out. I already used Image Robot to change ths pics to 256 colours, reducing their filesize. But I never had to mess around with the PSX format (the program couldn't do it anyway - the bpp wasn't 1) since I just did what Banshee said and changed the saving compression to 1.
Now it all works. The image is a little strange probably due to being a strange size (throughout the animation you can sometimes see the left part of frame 1 unless you quickly refresh the screen by scrolling away and back to it) but it works and looks decent.
So thanks for the help!
@ Banshee: Could you make the next version of your palette conversion program convert from YR palette format to JASC palette format as well as from JASC to YR? That would be great. Looking forward to the next version - make sure you iron out those bugs!
@ Cannis: Off-topic I know but while I'm posting here I want to remind you that you still haven't added my mod to the Assault Maps page...
@ Ren: How's the progress of your version of the money-transferring unit? I think I should let you know, I told Mooman about it as well. He is making a vehicle-based solution and I have just finished my chopper-based solution (this animation was for my "Aid Chopper" as a matter of fact). So that's 3 mods that use this unit: Yuri's Revenge Squared, Whiteboy's Rules and Total Destruction. Just last night I was playing online and I reeeealllly could have used this unit to give my ally some cash to aid in his struggles. But most online players seem to detest mods. Screw them I say...