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Duh. Sorry. I didn't READ the part about signature. I just automatically ASSuMEd that you were talking about your avatar.
Just for the heck of it, I tried using a HTML link to see what happens.
Back in a minute to see if it works.
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So, it seems that a HTML link will make a...
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Might be too many pixels (this file is 720x480 @ 96dpi and it is a 24bit image).
Or, try opening the image file on your computer and saving it again with a new name.
Your avatar file should be about 400x400 pixels.