Try searching this forum for [a /_search.php?bbs=&forum=119&terms=particle+system&method=simple&case=no&results=topic&user=&submit=Search]particle systems[/a]. There are plenty of options. I have never toyed with animated textures so they may throw a monkey wrench into some of the available options, but unique meshes with their own textures is (imo) the least effecient way to do it, so I'm sure you can get some improvements.
At the very least using copyentity to conserve the meshes could save some resources and rendering time... recycling objects is always a good way to speed things up if you're not already doing that. I would assume a non animated texture, but if possible using things like coloring the particles if possible would be faster...
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