Right click on the picture and save it to your documents and then you can find it later when you edit your avitar. Let us know if you still need help. Nice puppy.....
If you have other pics that you might want to use instead then post them 500 x 500 and I can play with them too. I have a good photo program and will help if I can. For a good avatar shot, you need to start with a good close up with detail. Most of your pics just are not good quality to make an avatar with.