I figured my issue out and I'll put it down here for anyone who might be having the same problem.
First go to your Control Panel and choose "Edit Options"
then go to the bottom of the page ........
then from the drop down menu in "Misc. Options" choose "Enhanced Interface
- Full WYSIWYG editing"
then go back to your C.P.and choose Edit profile picture
I think you could then use either existing files on your computer or do as I did and use Photobucket . There I chose/copied the IMG code and pasted it in the #1. option after deleting the existing
http://www.. Saved the changes and it was all good.