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Pretty sure there isn't something posted for this...
I'm sure you guys will let me know if there is...
Before I start, I would like you guys to know...
This only lets YOU see your changed avatar! Nobody else can see it! You can also change your friends' avatars, but again only you can see it!
I couldn't get this to work with the Awesome File Manager, it wouldn't copy the file to a USB even in advanced mode...
What you need:
*PS3 CFW 3.55 (Herp derp)
*Blackb0x FTP server
*FileZilla
All right, let's start...
1) Open up Blackb0x FTP server on your PS3 and connect FileZilla on your computer to your PS3.
2) Navigate to: dev_hdd0/home/
3) All of your user profiles are here, and as you can see, they are all numbered. You last one you created would be the biggest number. For example, I have created 33 users in my time, so that would be:
dev_hdd0/home/00000033/
4) Once you are in your desired profile, navigate then to /friendim/avatar/
5) Here you are! All of your friends are here with their avatars. The avatar size is 240x240.
6) Copy your avatar (me.png) to your desktop and open it up in any photo editing software. I use Paint.
7) Customize it to your liking, and FTP that SOAB back into
dev_hdd0/home/00000033/friendim/avatar/

You're done! Check your avatar under "Friends"! Mine looks like this:
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