Ok, now to get complicated. I THINK this can be done with some CSS and DIVs, not sure.
Having the badge.png overlay the avatar so that you keep the rounded edges of the inside box (assuming that's what people use when they create their own badges). Either way the overlay can help hide the fact that some avatars are different sizes (or at least help you from making a badge for EVERY avatar size).
That would also allow for better positioning, as for right now, it's not REALLY in position. You could use some creative table and cell creation to force it there, but with multiple usergroups and avatar sizes that'd quickly become a pain in the side.
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