Hi Ian,
Not sure what you mean. I think you mean that you don't see the animated texture while viewing a single frame in scene mode (or object mode). I will try and explain that, if I've got the wrong end of the stick let me know
In scene mode, as you step through frame by frame you see your objects move to the required position for each frame. e.g. in my example, if you select top view, you can see the camera moving as you advance through the frames.
If you have an object with an animated texture, the texture changes frame by frame, in the same way as an object moves frame by frame. The water splash starts as a video, it is converted to many single frame images - Tan0001, Tan0002, etc. Raxx'x script swaps the texture (Tan0001 for Tan0002, Tan0003, etc.) on the material depending on the frame that you are viewing. So in scene mode with an animated texture, you will not see any animation while looking at a single frame, the animation is done by selecting each image in turn as you move through the frames. It does'nt become animated video again until you render your scene.
If you had a splash consisting of 12 frames from start to end, you could make a stop frame animation with 12 images. You could put each image on a its own object, and in scene mode key the visibility of each object (each object is a frame of stop frame animation) so that the objects are displayed for 1 frame, one after the other. When you render, it will appear to be an animated texture on one object. Raxx's script achieves exactly the same, but with a single object. The expression that calls the script calculates which image should be selected given the frame number. The files Tan0001, Tan0002, etc. are each frame of the stop frame animation.
Let me know if that makes sense.
Have you seen Raxx's video tutorial on this thread
http://www.anim8or.com/smf/index.php/topic,5333.msg39604.html#msg39604?
[Still frames / sprites become an animated texture when you render (or play) the scene.
I could not find your reference "Raxx's method of "add to project"?
I don't know terranim8or, but my guess is that it creates many objects (particles) adds them to your anim8or project file and keys them in scene mode to splash / explode / smoke / fire ,etc.]
A