Your profile picture is the one that shows on your profile. Your avatar is what appears along with your individual posts. Some people have their setting set NOT to see everybody's avatar, which benefits those with slower connection speeds, loads pages faster.
I see that your profile picture (by going to your profile) is a cute picture of three people. Your avatar (looking at just your post here) is a very colorful primary color quilt!
P.S. Visited your blog, very nice