Here is a quickie animatiion of a walk cycle using an Odd Job Jack character:
Ass Scratcher.
Here is a process you might like to follow. I've written about this process elsewhere, but you could try this out for size. It is the result of some research I've been doing on your behalf. The software I used was Flash 8, Xara Xtreme and Anime Studio 5.6. Flash MX2004 would work fine, as would some drawing program other than Xara which can load .ai Illustrator files and save 24-bit png with alpha (32 bit). I've heard good things about Gimp, for instance, a freeware drawing program, but I've never used it.
If you can't draw, use freely-available assets with no royalty problems.
From this link:
http://www.oddjobjack.com/freejack.php?sec=2 , you can download professionally-produced characters, props and backgrounds for free, which you can use without restriction. As always, there's a catch -- you will need a version of Flash to use them. Luckily, Flash MX2004 or later is fine. You should be able to get hold of a copy on eBay for next to nothing. (Just don't expect to be able to use it for upgrades or anything if you buy it this way).
Here's what I did -- it's a process you should be able to use fairly efficiently.
0) The Odd Job Jack download contains an 'images' folder identifying characters, props etc.
1) Select some character that you need.
2) Load the .fla file into Flash.
3) Save it as an .ai file, say, test.ai, and close Flash.
3a) Open Xara.
4) Load test.ai into Xara.
4a) Save this image as a .png file (for reference), e.g. body.png
5) Each section of the .ai file (head, torso, hands etc.) is grouped
6) Make a new layer, say 'head'
7) Click on the character's head and press CTRL-X
8 ) Go to the 'head' layer, SHIFT-CTRL-V to paste in place
9) Repeat steps 6-8 until all major elements are distributed to layers
10) Turn off visibility for all layers
11) Turn visibility on for one layer, then export it as a png file. I export all images at double screen resolution (192 pixels to the inch), so I can allow for close-ups
12) Once all this is done, close down Xara and open Anime Studio.
13) Load body.png as a reference.
14) Load in each body part and use body.png layer for positioning
15) Rig character with bones and start animating!
You will need to learn other things, like using switch layers for mouths, hands and eyes, but this is plenty to be getting on with! Good luck!