I have been itching to know for a while. Some examples can be seen here:

http://www.iconator.com/icon.php?IconID=1160515
http://www.iconator.com/icon.php?IconID=1168396

Are the creators handdrawing every pixel, or is there an easier way?

Gradients, would be your easier way.

How familiar are you with your photo editing program?

I'm fairly comfortable in photoshop.
However, ImageReady and I are mere aquaintences.
Would there be a tutorial out there? I've tried looking some up, but they don't really answer any of my questions.

Hmm. It looks like they're editing every pixel to me. It looks nice. (Just not my type of stuff, obviously. Haha. )

Even if that's the case, how would you go about animating it?
It's soo mind boggling.

Use a seperate layer for one gradient, and for every image slice, just move the gradient layer over a couple pixels.

sounds like a lot of work for a little animation. is there an actually tutorial for it?

this is called tweening with gradient opacity x].

Oh Oh I had an account there XD [/endspam]

The best way for precise detail is by coloring it pixel by pixel! :x
There`s some tutorials here. =)