Hi,
Thank you for using RegistrationMagic. Currently avatar for users are automatically pulled from their https://gravatar.com accounts. If a registered user has a gravatar account, you will see his or her image inside the User Manager section (table and individual User view).
If you want to upload (or allow users to upload) a custom image from their computers to server as profile picture, unfortunately, this functionality is not yet available. It also means side-stepping into territory of profile system plugins. Therefore instead of backing half thought out profiling features into RegistrationMagic we are in process of building a full fledged companion plugin that will incorporate profile image feature and much more. At the same time RegistrationMagic will continue to make registration system easy and powerful.
Let me know if you have any other questions.