Well I noticed after working on this a bit that it was working in one of my styles, and not the other. Didn't work in default and worked in another, so I just took a look at each template to see if there was any difference. Anyway, I got it to work by:
Changing
Code:
<if condition="$blocks['profile_picture']">
<td id="profilepic_cell" class="tborder alt2">$blocks[profile_picture]</td>
</if>
<td valign="top" width="100%" id="username_box"<if condition="$prepared['profilepicurl']"> class="profilepic_adjacent"</if>>
to
Code:
<if condition="$prepared['profilepicurl']">
<td id="profilepic_cell" class="tborder alt2"><img src="$prepared[profilepicurl]" $prepared[profilepicsize] alt="<phrase 1="$prepared[username]">$vbphrase[xs_picture]</phrase>" /></td>
</if>
<td valign="top" width="100%" id="username_box"<if condition="$prepared['profilepicurl']"> class="profilepic_adjacent"</if>>
Thought I would post this up in case someone else had the same problem and was searching for solutions. Thanks for your time guys.