OK, it looks like it's working, with a few minor issues:

As you can see, there's some artifacts on the right side of the icon (weird vertical line)
Also, the background of the icon stands out a lot on my computer using the windows classic theme. You could work around that one by obtaining the color of the titlebar first, using this:
finally, although the App Icon itself is animated, the icon in the taskbar still lists the default white square, although I assume you skipped setting something there altogether
Interesting idea, though!

As you can see, there's some artifacts on the right side of the icon (weird vertical line)
Also, the background of the icon stands out a lot on my computer using the windows classic theme. You could work around that one by obtaining the color of the titlebar first, using this:
Import "-luser32" Extern "win32" Function GetSysColor:Int(index:Int) = "GetSysColor@4" End Extern Const COLOR_SCROLLBAR:Int = 0 Const COLOR_BACKGROUND:Int = 1 Const COLOR_ACTIVECAPTION:Int = 2 Const COLOR_INACTIVECAPTION:Int = 3 Const COLOR_MENU:Int = 4 Const COLOR_WINDOW:Int = 5 Const COLOR_WINDOWFRAME:Int = 6 Const COLOR_MENUTEXT:Int = 7 Const COLOR_WINDOWTEXT:Int = 8 Const COLOR_CAPTIONTEXT:Int = 9 Const COLOR_ACTIVEBORDER:Int = 10 Const COLOR_INACTIVEBORDER:Int = 11 Const COLOR_APPWORKSPACE:Int = 12 Const COLOR_HIGHLIGHT:Int = 13 Const COLOR_HIGHLIGHTTEXT:Int = 14 Const COLOR_BTNFACE:Int = 15 Const COLOR_BTNSHADOW:Int = 16 Const COLOR_GRAYTEXT:Int = 17 Const COLOR_BTNTEXT:Int = 18 Const COLOR_INACTIVECAPTIONTEXT:Int = 19 Const COLOR_BTNHIGHLIGHT:Int = 20 Const COLOR_3DDKSHADOW:Int = 21 Const COLOR_3DLIGHT:Int = 22 Const COLOR_INFOTEXT:Int = 23 Const COLOR_INFOBK:Int = 24 Local bgred:Int Local bggreen:Int Local bgblue:Int Local bgcolor=GetSysColor(COLOR_ACTIVECAPTION) bgred = bgcolor & $FF bggreen = (bgcolor & $FF00) Shr 8 bgblue = (bgcolor & $FF0000) Shr 16 Print bgred+","+bggreen+","+bgblue
finally, although the App Icon itself is animated, the icon in the taskbar still lists the default white square, although I assume you skipped setting something there altogether
Interesting idea, though!