Since he owns a k700, I assume thats the phone he wants to create a theme for.@ oshahid
First of all, you need to post your questions properly to this forum if you expect any kind of helpful response.
In answer to your question
You need a theme creating program from sony ericsson developers site (free download), a graphic manipulation utility and a gif animation utility (optional).
There are plenty of tutorials available on this forum to get you started.
Vic