I opened the template in fireworks (i also have photoshop)

 

I opened the sample source file. I opened my image and i resized it, but from there I have no clue what to do. I converted it to alpha as well.

 

Next do I convert to black and white?

 

Thanks

as far as im aware avatar drawings have to be done in pencil so theyre innatly black/white, but someone whos done these should probably confirm, however all the avatar drawings that people have done were in pencil 

as far as im aware avatar drawings have to be done in pencil so theyre innatly black/white, but someone whos done these should probably confirm, however all the avatar drawings that people have done were in pencil

Avatar requirements, as detailed ingame are:
 

Once uploaded your image will be reviewed for approval, if approved it will be added in the avatar list. Only hand-drawn artwork will be accepted. Avatar style must match the style of current MD avatars and contain the small MD letters as all avatars in MD do. Drawings should be converted to alpha, so they become B/W and transparent, not cut around the edges.

Images must be 100x160 px, gif, max 20kb
Background transparency color should be (RGB = 241.239.214, Hex #F1EFD6) Download sample source file, edit with fireworks or photoshop, export as transparent gif.

 

Therefore as Syrian pointed out, it must be hand drawn.

 

Did you or someone else draw it, and do you own the drawing rights?