I have just tried it and it does work, you just need to have the right file size / dimensions.
I should really do some sort of auto resizing to make things more user friendly.
At the moment I have increased the size allowed to 25K, so make sure your image size is <= that, and that the width and height stay under 120.
There are lots of websites you can use to resize the images - have a quick search http://www.google.com/search?q=online+image+resizer
and you'll find plenty.
Any problems, email me the image you would like and I will get it uploaded for you.