Vector animation comprises objects drawn using software like Freehand or Illustrator using overlapping vector content like lines, points, and polygons. Each vector object has its own attributes like line, point, and location, allowing it to move independently when overlapping other objects. Raster animation uses pixels for detailed, photographic animations but loses quality when scaled. Vector animation produces cleaner, smoother results when scaled due to using mathematical values rather than pixel values. Common file formats for animation include Flash (.swf), GIF, MNG, and SVG, each with their own advantages and disadvantages for things like color depth, file size, and browser support.