I have to use a sequence of png images in a texture because the current CVS has a bug that crashes Blender when a quicktime with alpha channel is loaded into the texture. So I still am hoping that there is a way to load an image sequence directly into a texture.
Just select the right type of image your are working with(still, seq, movie, result)
Then you should be able to move frame by frame. I added the timeline under the editor to make it easy and just used the right arrow.
I was then able to blur out the background frame by frame.
You can then access this through the nodes. and output it to a file.
The new image refactor lets you play a sequence of images and edit them
The new image refractor will solve my problem for sure. I downloaded the CVS build from graphicall.org and tried it out. It has a button for image sequences. But you are right, it has a problem with alpha chanel still.
I’m sorry, someone must have changed the original article where it was stated more clearly that you may not press the movie button if you want to use an image sequence.