jQuery Mobile + Phonegap :: Ajax "Loading" gif does not animate

I have a working app built in jQuery Mobile and Phonegap (using Eclipse on Mac OSX)

Everything is working OK, except when the Ajax loading message pops up, the animated gif does not animate, it simply stick on the first frame.

Viewing the app in a web browser (as it is basically a mobile site) the gif animates no problem.

I have read that showing animated gifs on Android is tricky without using the web browser. Is there a way to get it to work? Maybe replace it with something in CSS3?