In the top right corner of the page, click "Settings." On the left side of the Settings page, under "My settings," click "Edit Avatar." This lets you change your avatar. For the picture that appears on your profile page, click "Edit Profile Picture." Either upload a picture from your computer, or paste the image URL of your desired picture.
Here's a direct link if you're still having trouble. http://www.everypony.com/forums/profile.php?do=editavatar There's also some generic avatars to choose from if you have issues getting one uploaded.