User created avatars

[theodonnells]

I am looking for a system where users can create their own avatars.I have set up a demo page where users can drag and drop items onto their character http://www.toonsunited.com/fittingroom.htm .But how would i go about saving an image to their avatar? Obviously i would need to put the character on a smaller background..Any ideas...I see gaia.com has something like this where the image is saved to your avatar but they use phpbb...