Some of the questions I’ve seen asked a lot: “What is the deal with personal gamer pictures?” “Does this require the Xbox Live Vision camera?”
The personal gamer picture is a new feature enabled with the Spring Update. You do not need the Xbox Live Vision camera for this; you can go pick a new image right now. Personal gamer pictures will only be seen by others who are on your friends list. Everyone else sees your public picture.
When the Xbox Live Vision camera does become available this fall you will also be able to take your own photo using the camera. Again only your friends will be able to see this picture.
If you know a friend on the Xbox Team, or who works at Microsoft, there is a chance you may get to see their personal picture taken from the camera. We have been beta testing the camera and everyone really is having a fun time with the cool new feature.
-IndieGames (Daryl Welsh)
[EDIT: June 11, 2006]
There has been some confusion over my comments above. The feature 'Personal Gamer Pictures' can be used today. You can choose a gamer icon from any of the available ones on marketplace which will only show to your friends.
The ability to take a snapshot of your own will not be available until the Xbox LIve Vision camera is released.