Oh I see. Yes I was thinking of alpha-equivalence, sorry.
Now I must ask, do you know any good papers/algos on that reduction? And how would you envision animating? It seems a bit like a lambda/var pair just fall off...
I don't know what I might refer you to. Beta reduction requires recognizing subtrees of the form (#T S) (where T and S are any subtrees), eta reduction just requires recognizing subtrees of the form #(T 1) (where T is any subtree).
No idea about animation. It's really not something I'd thought about, I have to say...