Okay, if you want the user avatars to display directly below the titles, you will need to edit your "MEMBERINFO" template as follows:
Locate the code:
<vb:if condition="$prepared['usertitle']">
<br />
<span class="usertitle">{vb:raw prepared.usertitle}</span>
</vb:if>
And directly below this, add:
<img src="{vb:raw show.avatar}" alt="{vb:rawphrase xs_avatar, {vb:raw prepared.username}}" id="user_avatar" style="margin: 5px 0" />
Now, to make the variable "$show['avatar']" contain a link to the user's full sized avatar image, you need to create the following plugin:
Product: vBulletin
Hook Location: member_complete
Title: Create URL To Avatar
Plugin PHP Code:
$avatar_url = fetch_avatar_url($prepared['userid']);
$show['avatar'] = $avatar_url[0];
Plugin is Active: Yes
Click "Save."
Now, to prevent the thumbnailed avatar from displaying, edit your "memberinfo_block_ministats" template by locationg the code:
<vb:if condition="$prepared['avatarurl']">
<dl class="stats">
<dt>{vb:rawphrase avatar}</dt>
<dd class="avatar"><img src="{vb:raw prepared.avatarurl}" alt="{vb:rawphrase xs_avatar, {vb:raw prepared.username}}" id="user_avatar" /></dd>
</dl>
</vb:if>
and comment it out as follows:
<vb:comment><vb:if condition="$prepared['avatarurl']">
<dl class="stats">
<dt>{vb:rawphrase avatar}</dt>
<dd class="avatar"><img src="{vb:raw prepared.avatarurl}" alt="{vb:rawphrase xs_avatar, {vb:raw prepared.username}}" id="user_avatar" /></dd>
</dl>
</vb:if></vb:comment>
Once you verify this works as you desire, we can move on to the other issues, about which at this point I am still unclear. :)