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BEST LIGHTING SETTINGS:
Go to Render settings>Effect then select global illumination and ambient occlusion
in ambient occlusion set contrast to about 15%
and maximum ray length to like 150-200
experiment and have fun
*for global illumination to work you need to have a light or a sky in your scene*
looks LQ, and lags quite abit/freezes nice work tho you will get there
Its not the render settings that cause the LQ thing.
Whatever software you use to save the GIF make sure that you are using OPTIMIZED OCTREE and ERROR DEFUSION also dont use light gradients as GIF cant cope with them.
To create a background try putting the moving parts inside a shape like cube / sphere / tube and experimenting with texture and light. There are loads of free textures Google is your friend.
CHEERS
