Tiffany - That pic is called your Avatar pic, just so you have the terminology

And it does seem to be a glitch, as it doesn't seem to be working for a few other members as well. I think we're just going to have to wait till Kat says that everything is complete before being able to make that change
Kat - If you're checking in on the thread, the problem seems to be occurring when members are using the options that say:
You may upload a new custom image using the controls below.
Option 1 - Enter the URL to the Image on Another Website
Option 2 - Upload Image From Your Computer
Note: The maximum size of your custom image is 100 by 100 pixels or 14.6 KB (whichever is smaller).
Either option gives an error stating "Unable to Save Image". Obviously I know you can't fix this right now, just letting you know where the error is happening. It is happening when using those options on Edit Avatar and Edit Signature