Okay, so the way the thing works is, you can use a picture from a website location url. For example, if you have a website at [http://www.images.com], and you uploaded a picture there named profile.jpg, you would be able to input the address of that picture in your profile where it says "link to offsite avatar". [http://www.images.com/profile.jpg]
The other option is to provide a gallery of pictures for you to choose from. The difference is, the remote avatar option allows you to pick whichever image you want (with certain restrictions I'll get to in a moment), whereas a gallery gives you a limited choice, and thus we'll have numerous users with the same picture.
The only difference to me is providing pictures in the gallery for everyone, but I'm confident that I can get some of you to contribute images if the majority of you would prefer a gallery.
Poll - Vote on avatars/profile images
Moderators: blackrose, Silent Moon Sphinx