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A rotating image block can easily be created by using modules that you make already have installed. If you have not already download, install, and enable the following modules:

After you've installed these modules, you'll have to adjust the user permissions (admin/user/permissions) to ensure the correct roles have permission to view and administer these modules.

Create a new ImageCache preset (admin/build/imagecache). In my example, I named it "home_rotating". I also added a Scale action to ensure all the images are the same width. It's probably a good thing to check the region width in your theme and adjust the image width accordingly.

Define a new content type (admin/content/types/add). In my example, I named it "image_home_rotating". I left off the body field label because I am only concerned with displaying the image (no other text). Add a new field to the new content type, and choose Image for Field type and Widget. I named mine "field_image_home_rotating" and labeled it "Image". After adding the field, click on the Display Fields tab. For teaser and Full node, choose the ImageField preset you just created. This will ensure the right image size is used when viewing the node.

Create a new view (admin/build/views/add). Make sure you choose Node for View Type on the first form screen. Add two filters: one for published nodes; and one for node type, and choose the newly created node type. To get a random selection of nodes, add Sort Criteria and choose "Global: Random". Limit the Items to Display to 1. You can leave the Style set to Unformatted and the Row style to Fields. Add a new field and select the newly created image field. When adding the field, the Format setting allows you to change the ImageField preset. If it's not already set, choose your new preset. I also choose to hide the Field label on this step. Add the Block display to the view and save it.

Lastly, assign this block view to the region in your theme and add a few image nodes. As you refresh the page, the image should change.