Ok, I just happen to be working in PhotoShop the last few days and, recently, I've run into some of this type of weirdness with my business projects. So, I want you to try this Bill. I made you an "online version" (i.e., the "made for website use" type) of Mr. Bill shrunk to the exact dimensions that an avatar can be here (150x150). It's size is like 14k and there are no spaces in the file name.
Now, when you try to upload this, I want you to use Firefox. I have found that some of the add-ons, extensions, ad blockers and pop-up blockers (as well as who knows what) in Chrome and IE were causing the bulk of these types of problems. You can also try it directly from my website:
http://www.nwdreamer.com/gif/mr-bill-avatar.jpg I'm just curious to see if you can get ANYTHING to work by removing all the stuff possible. Now GO, GO WITH THE BURST!