I cropped one of my pictures to less than 100 x 100 and it was still over 14 kb when saving as JPEG, it was small enough if I save as .gif or 256 bit color, but the quality stinks.... I noticed some of you have a lot nicer quality avatars.
I don't know what to tell you! LOL! Mine just worked! Try putting your pic on photobucket and resizing it with the edit there, and then use that url to get it here.