Should be a box above this where you can click browse and pull a pic off your computer, at the moment you have clicked the little test dot which has changed your avatar to Bulletin and this has worked ... you may need to unclick this test option first.... trial and error
Click reset fields and click browse search for your avatar you want, i think you have to click on a dot to activate avatar (use custom avatar option) then save changes.
Note you are limited to file size of any imported pic.