I don't see an image.
As for free photo sites, I've been using
Photobucket for years now with hardly any problems. It's also where my avatar is hosted.
I know there are a few others out there, but I don't know about them. For avatar size, as long as it's within 100x100 pixels in size, you're fine. And I'm not sure what the picture is you're worried about, but don't be concerned. Everyone's entitled to their own expression through avatar.
Some people don't even have L&C icons at all.
Hope this helps!
Sara