Hi Bryan,
Thanks for sharing
The flickering in Ie can easily be solved by loading the hover state in the parent of the anchor and then just hiding the anchor image to allow the already pre-loaded image show through.
In the background position method the background is just moved to show a different image.
Although these techniques are relatively flicker free once loaded they all suffer from the flickering hourglass in ie (as with your example and the example you linked to).
I find this really annoying (even though some people hardly notice it) and I use the method shown below which completely eleminates the flicker and the hourglass and I believe to be the best of all the rollover techniques.
The only drawback is that one image has to be in the foreground (i.e. in the html).
Both these links show the method mentioned and do not suffer from flicker or hourglas and give a more pleasing effect.
http://www.pmob.co.uk/temp/cssrollovertabs.htm
http://www.pmob.co.uk/temp/cssrollover4.htm
You may wish to try it with your animated gif as the hourglass is very evident on that example.
While we're still on the subject theres an article here that you've probably seen already but is probably worth mentioning again. (It doesn't use my method but is uesful all the same)
http://www.alistapart.com/articles/sprites/
Paul