The opacity of the avatars should only be reduced, or in your terms "washed out"

, if the user is offline. According to how I hacked it.
Code:
$avatarimage='<img src="'.$avatarurl.'" border="0" style="filter:alpha(opacity=50)" alt="Search for all posts by '.$username.'">';
The above is what gives it the faded "offline" affect, ofcourse this should already only be applied to those offline. :/