Far as I know the maximum size hasn't changed, 200x240 should work fine as far as physical size, but there is a second component of image file size and thats about 101kb, so you may also need to save in another format, or reduce pixel quality a bit..
EDIT - duh, I see your file is already only 88kb so it should upload, and 192x250 according to the properties, which is close to EE's avatar specs
my personal (at present) fav image editing software is GIMP..a freebie.
http://www.chryslersailors.com/discussi ... c.php?t=88
Hope that helps !