Today i just placed Flash animated tags in this blog and here is summary of the procedure of placing this tag in your blog and i belive you can do that. its quite easy. just follow the steps

It may not suitable for all XML template so read detail about the template before downloading it.

1. Log in your blogger account

2. Then go to Layout

3. Then click edit HTML but dont click expand widget mode

4. Find the following code by ctrl + F

<b:section class='sidebar' id='sidebar' preferred='yes'>

5. Now Place the below codes after the above line

<b:widget id='Label99' locked='false' title='Labels' type='Label'>
<b:includable id='main'>
<b:if cond='data:title'>
<h2><data:title/></h2>
</b:if>
<div class='widget-content'>

&lt;object type="application/x-shockwave-flash" data="http://halotemplates.s3.amazonaws.com/wp-cumulus-example/tagcloud.swf" width="250" height="200" allowscriptaccess="always" &gt;
&lt;param name="movie" value="http://halotemplates.s3.amazonaws.com/wp-cumulus-example/tagcloud.swf" /&gt;
&lt;param name="bgcolor" value="#ffffff" /&gt;
&lt;param name="flashvars" value="tcolor=0x000000&amp;mode=tags&
amp;distr=true&amp;tspeed=100&amp;tagcloud=&lt;tags&gt;
<b:loop values='data:labels' var='label'>
<a expr:dir='data:blog.languageDirection' expr:href='data:label.url' style='12'><data:label.name/></a>
</b:loop>
&lt;/tags&gt;" /&gt;
&lt;p&gt;Blogumulus by &lt;a href='http://www.roytanck.com/'&gt;Roy Tanck&lt;/a&gt; and &lt;a href='http://www.bloggerbuster.com'&gt;Amanda Fazani&lt;/a&gt;&lt;/p&gt;
&lt;/object&gt;


</div>

<b:include name='quickedit'/>
</b:includable>
</b:widget>

6. Now preview the blog before saving it. If you know some basic html code then you may change its color text and so on.