Here is what ya all need to do. Its kind of pain in the ass, and thats why everyones comes up as a bad image. All will be fixed once the new forum is released.
If you want to have a custom avatar, all you have to do is follow the steps below.
1. Create a 64x64 Pixel Image for your Avatar.
2. Rename your Avatar to yournickname.gif, for example, mine would be WeST.gif.
3. Go to the link below titled Custom Avatar Upload and Upload the file.
4. Go into your Profile and select "Custom Avatar".
5. That's it! Have fun!
Custom Avatar Upload!
This is in the Announcements section on the main Forum Page.