never used Imageready but doesn't it come with Photoshop? Used for still images I believe.
For placing an image over the top of some video you ideally need a compositting tool or a video editor. Adobe-wise aim for somethign like ADobe Premiere elements or, if it;s a one off, then just downlaod the 30 day trial of Premiere Pro and use that
Video editors allow you to layer video and images together - much like you may have already seen in Photoshop.
Place your video on the bottom layer and then import a still of a fairy (with alpha channel background) onto the second layer and change it;s position over time to animate it.
Ask again if you need more.
Alan