I use 2 lamps with a shade on them( I forget the names of them). I use Gimp for some effects, iKITMovie for frame capture and sound effects and windows live movie maker to finish.
I have a Panasonic DMC-FH25K but soon hoping to get a webcam. Because with webcams you can see what you are doing directly in iKIT when you are animating.
Never Touch the Button
This is one of my more recent animations. I like to make my animations have humor as much as I can.
24 FPS Test animation
I play around with frame rates often. 15 Frames per second is fine but sometimes I try higher rates like 24 fps like in this animation here.
My Tip for Animating
Before I start animating I create a story obviously, then if it's a short story I just start animating, but if it's a long complicated story, I usually write a script using Celtx. I animate at 15-24fps depending on my animation. I always make sure my camera is securly fixed to the desk in case I bump against it when I am animating.