Hmm... I changed an admin setting so that oversized avatars are rejected by the system, instead of forcing them down to the 100x100 format. Apparently, that change also fixed the issue you're speaking of here, too. Your avatar wasn't too big, but it was still being stretched by the system as a default of that setting in the admin controls. Rrrmmm... *shrugs* Doesn't make sense, but ah well. I'd rather refuse oversized avatars, anyways. They were often an issue in the past.
Benjamin