I just opened your .gif in ImageReady. The problem is that it has 45 layers because of the image transition, so the file ends up being 92kb and the avatar size limit is 39kb. Whoever created it originally didn't do it quite right, but I'll fix it up in no time.
No prob...I'm new here, so I understand the confusion. After a while, you'll realize that I like to joke around and have fun.
I don't use ImageShack at all...I do all of my own image editing and use my own web space for hotlinks. The reason the color quality is lower than the original is because in order to reduce the file size to under 39kb (within avatar specs), I had to either reduce the image size from 100x100 to something smaller or reduce the amount of colors. A .gif has 256 maximum colors...I dropped the colors to maintain the 100x100 image size, but reduce the overall file size to under 39kb.
Her particular image's DPI is at 72, but there is no need to adjust the DPI when dealing with animated .gifs. I don't reduce colors unless there's nothing else I can do to bring the file size under the 39kb limit. The original file has 45 layers and animation frames which is WAY too many for this animated .gif. I reduce the number of layers/frames first, then work on the reduction type, loss, colors, etc.