1. Right click on any pic you like
2. Click "Save Pic As" or "Save Pic to Desktop" etc.
3. Upload to photo hosting site (I use photobucket)
4. Resize to the size parameters set (VF uses 140x180, max)
5. Save changes made to size (on photobucket, I choose "replace original" once the image is resized)
6. Save this newly resized image on your desktop
7. Load up VF
8. Select "User Control Panel" at the top, under the banner
9. Select "Profile" from the Options menu
10. Select "Edit Avatar"
11. Choose "Upload from your machine" by clicking the "Choose File" bar
12. Select the appropriate file... click ok, etc.
13. Select Submit
Voilà
The updates gave us the "Link Off-Site" option but I always use the "Upload from your machine" because of moved/dead links...