I guess there really is a problem and not just that I've looked in the wrong places.
To answer Alicia, No I do not have the avatar under Alert Preferences.
To Laureen: I opened the link you provided and compared it with my page to same destination. When I open my Personal Details page it looks almost identical to the link page you've shown me.
The difference is that your page starts with Status Message________, then goes to Avatar_________ (where you can"click the image to change your avatar." ).
The top of my Personal Details page does not have those two features on it. (Not anywhere on that page.) My Personal Details page begins at Custom Title________, then Gender, then Date of Birth (and edit your privacy setting options), then ends with Location, Occupation, Home Page and About You.
I've scrolled the entire page and no avatar feature anywhere. I wonder how many others don't find the feature on their pages too? I have looked for it in all the pages you can access under the options provided by clicking on my name in the right hand corner.