Try this. It looks fine here.
sync rate 60
sync on
backdrop off
load bitmap "800x600.jpg"
x1 = 352
y1 = 16
x2 = 784
y2 = 384
get image 1,0,0,800,600,0
get image 2,x1,y1,x2,y2,0
cls
sprite 1,0,0,1
sprite 2,x1,y1,2
set sprite 1,0,0
set sprite 2,0,0
spr = 2
repeat
tv# = tv# + 0.01
set sprite texture coord spr, 0, 0.0, 0.0 + tv#
set sprite texture coord spr, 1, 1.0, 0.0 + tv#
set sprite texture coord spr, 2, 0.0, 1.0 + tv#
set sprite texture coord spr, 3, 1.0, 1.0 + tv#
if upkey()=1 then spr=2
if downkey()=1 then spr=1
sync
until spacekey()=1
end