Yeah, that's right.

If you are on a PC, use MS Paint. Take your picture, reduce it using the image re-size tab and reduce it by 50% both ways (horizontal and vertical) and save it as .JPG. Try to upload it. If it won't fit, do it again.. repeat till it does fit. There are size restrictios for the avatar. If your camera is a 5 Megapixel, for instance, and you use most of that, the resultant size is way WAY to large to fit as an avatar. The ending byte size of a picture that will fit is fairly small.

CGr.