Uploading Avatars

Where does an image go when you paste the location into the "Upload an avatar from an URL" box and save? I checked the gallery, but it doesn't look like it's there.

You mean where you can find it or you mean what happens to it when you upload it?

Both.

As you see in my post my Avatar is above the username. Its placed on the servers of Forumotion and don't have access to that.

What's the difference between using an image from a URL and uploading an image from a URL?

useing a url would be useing a direct link from an image host.
like if you placed this link there. and hit save then that image would be your avatar.But now if the images exceeds what ever dimensions you have set for avatars then it would not work.

http://tinypic.com/r/14bpyki/6

now if you click the browser .then this allows you to upload a pic from your computer.But once again.if image exceeds what ever dimensions you have set for avatars then it would not work.