Original Flipbook: http://www.instructables.com/id/Handmade_Flipbook/
Step 1: Create your single images
(I'm also testing out some free software to do the video frame grabs and create the individual framed images shown here. As soon as I find some that works, I'll post another instructable showing you how to use it.)
Just a summary: I used Pinnacle 12 to grab individual frames from a 3.5 seconds worth of video. I've found that a once inch tall stack of images is about 90-100 pictures - anything thicker than 1 inch and the flip effect just isn't that great unless you get really good at sliding your thumb back as you flip... experimentation seems to indicate a stack no thicker than the length measured from the tip of your thumb to the first joint works best.
After grabbing the individual frames, the first time-consuming portion starts - pulling each image into my graphics software (I use Flash to take advantage of layers, but you might also look at Inkscape - free OpenSource software that supports layers and exports to JPEG). When done, you'll have a large collection like this...