What is avatar? Avatar is an image (or icon) which is unique to the person who is making the comment. When using comment avatars in your blog, you will easily be able to recognize comment authors, especially those who regularly visit your blog. Also I feel this adds a greater sense of interaction between blog authors and their readers.
Avatar
But now you can install avatar in blogger comments form using MyBlogLog.
MyBlogLog is a social network for the blogger community that is based in part on interactions facilitated by a popular web widget that many members install on their blog. Bloggers can then display widgets on their sites which show MyBlogLog online community members who have recently visited their page. These widgets also contain links to visiting members' community pages, and are one way in which users connect with one another.
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Here's a comment. Your form works fine. Maybe, you need to check your security settings on your computer. I see that you're using a CAPTCHA for comments, and the third party cookies setting is a common problem there.
If you want avatars to show up, you use popup or separate page comments. Inline comments ("embedded below post") don't have them, I believe to make your post pages load faster.