Ok PoD lets take this one step at a time.
First of all you need to configure it.
Look for something saying Cofigure or Set up a New Account.
This should bring a box up where you can put your details in.
The host name can be anything you like, its just so that if you have a few FTP accounts its easy for you to select which account you are going to upload to.
There should be a Host Address, this is the name of the server that your webspace is hosted on and your ISP should have given you the details, if not check on your ISPs site for FTP details.
TCP Port should be left at its default which will be 21.
You then just need your Username and Password which again your ISP should have provided you with.
Eneter that information and click ok and the you should be able to connect to your webspace.
Once connected simply browse through the window on the left of your FTP prog for the folder where your jpg is stored and then drag it into the right window.
This will upload it to your webspace and then you can link to it for your avatar