Here at Tam Tam we are currently working on implementing SP2010 as our Portal and Customer Portal Platform.
We wanted to have all our Employee profiles to include pictures:

SP2010 stores Profile Pictures in the MySite Host. There is a Picture Library there called “User Photos”. Inside there is a Folder named Profile Pictures. If it is not, it just means no one has uploaded a Profile Picture yet.
Each profile picture comes in three flavours: _LThumb, _MThumb and _SThumb. SP2010 does this for you, through the Profile Property Editor for Profile Pictures.

So, with the help of Reflector, I wrote a small tool that would import all our profile pictures and update the user profiles. I created a small Forms application that would import the profile pictures, based on username.jpg pictures.
The magic hapens here, this code is by Microsoft actually, not me:
using (Bitmap bitmap = new Bitmap(num3, num4, PixelFormat.Format32bppArgb))
{
using (Graphics graphics = Graphics.FromImage(bitmap))
{
graphics.CompositingMode = CompositingMode.SourceCopy;
graphics.CompositingQuality = CompositingQuality.HighQuality;
graphics.InterpolationMode = InterpolationMode.HighQualityBicubic;
graphics.DrawImage(original, 0, 0, num3, num4);
using (MemoryStream stream2 = new MemoryStream())
{
bitmap.Save(stream2, ImageFormat.Jpeg);
stream2.Position = 0L;
return folder.Files.Add(fileName, stream2, true);
}
}
}
If you want you can use the tool and the code by going here. It is a research project, not a product!
And now we have profile pictures for Tweets:

Organisational browser:

