Animation flag
Check this if you want to play material animation.
Animation is applied only to 1 layer materials. If material is applied to a particle system, the animation is controlled by the particle system life duration, so, in that case, this flag isn't used.
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Animation grid
These values tells the engine how many columns and how many rows is divided the texture for producing the animation frames.
In the following fire texture, for example, there are 4 x 4 animation frames:
So you have to insert 4 and 4.
In order to correctly visualize the texture you have also to set the tiles of the layer 0 textures to 0.25(1/4) and 0.25(1/4).
Otherwise you will see the animated texture 4 times tiled.
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Animation speed
This is a multiplier applied to animation speed.
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