This seems new. If you select "Upload photo", you're sent here:
talkgadget.google.com/talkgadg ...

Link to the gadget: talkgadget.google.com/talkgadg ...

(Note: you must be logged into the gadget to view the first link.)

"Do not upload pictures containing *celebrities*, nudity, *artwork* or copyrighted images."

Celebrities, artwork? Sounds kinda stupid. Why shouldn't I be able to use my own artwork? Or my own face, if I'm a celebrity?

Furthermore, since I own the copyright to all my own images, that doesn't leave me with many choices... ;-)

I think we can still upload blank images, or text. Seriously, that avatar is very small, so it's fair use.

Philipp:
Google always had this warning.. (well, not for the gadget, but for Gmail Talk)

See here:

img523.imageshack.us/img523/31 ...