Gmail has added a new feature that allows pictures (Gmail Pictures). You set one for yourself and can assign one for your contacts. To check it out, login then click 'new features' then it lists Gmail Pictures and you can click again for more info. This is really going to buzz the youth market, nice move Google. hmmm, now to find a picture I look less ugly in.
You can select from menu of icons. you can also change the way your chat dialogue looks!! Settings>Appearance>Chat Theme "Add" "View" and "57" or how many messages you have appear at the bottom of Google Talk