Relic, that's because we don't allow uploaded avatars in chat. If you're finding that option, don't bother using it because it doesn't work (we've purposely disabled it).

Chat uses your forum avatar. If you want to change your chat avatar, simply change the avatar you use on the forums. It has to be an uploaded or custom avatar, however; using one of the pre-existing PC avatars won't work in chat. There's another thread that explains how you can use one of the stock avatars as a custom avatar to get it to work in chat.

DocJohn