Lately there is a new solution released by Microsoft called Activity feeds which is available not only for CRM online but you can also install it on premise versions of Dynamics CRM 2011.

If you want to install this solution you must be sure you have the Rollup Updates 5 installed on your CRM. 

You can download this solution from the CRM marketplace at
http://dynamics-crm.pinpoint.microsoft.com/en-US/applications/microsoft-dynamics-crm-activity-feeds-12884926310
 

With the CRM 2011 activity feeds solution you can also setup the user's picture profile.



Click on Edit





Browse the image you want to use for your profile and click OK



Now you have updated the image for your user profile.