diff --git a/libretroshare/src/rsiface/rsiface.h b/libretroshare/src/rsiface/rsiface.h
index aa582e280..e7fc4d1f1 100644
--- a/libretroshare/src/rsiface/rsiface.h
+++ b/libretroshare/src/rsiface/rsiface.h
@@ -204,6 +204,7 @@ class NotifyBase
 	virtual void notifyCustomState(const std::string& peer_id,const std::string& status_string) {}
 	virtual void notifyHashingInfo(std::string fileinfo) { (void)fileinfo; return ; }
 	virtual void notifyTurtleSearchResult(uint32_t search_id,const std::list<TurtleFileInfo>& files) { (void)files; }
+	virtual void notifyPeerHasNewAvatar(std::string peer_id) { (void)peer_id; }
 };
 
 const int NOTIFY_LIST_NEIGHBOURS   		= 1;
diff --git a/libretroshare/src/rsserver/p3msgs.cc b/libretroshare/src/rsserver/p3msgs.cc
index e25f9082d..7b6b5e253 100644
--- a/libretroshare/src/rsserver/p3msgs.cc
+++ b/libretroshare/src/rsserver/p3msgs.cc
@@ -168,13 +168,6 @@ void p3Msgs::initRsChatInfo(RsChatMsgItem *c, ChatInfo &i)
 		i.chatflags |= RS_CHAT_PUBLIC;
 		//std::cerr << "RsServer::initRsChatInfo() Chat Public!!!";
 	}
-	//std::cerr << std::endl;
-
-	if(c->chatFlags & RS_CHAT_FLAG_AVATAR_AVAILABLE)
-	{
-	   std::cerr << "p3msgs::initRsChatInfo(): new avatar available for peer " << i.rsid << ". Sending above." << std::endl ;
-	   i.chatflags |= RS_CHAT_AVATAR_AVAILABLE;
-	}
 }
 
 void p3Msgs::getOwnAvatarData(unsigned char *& data,int& size)
diff --git a/libretroshare/src/services/p3chatservice.cc b/libretroshare/src/services/p3chatservice.cc
index e86f41af5..5ac4db244 100644
--- a/libretroshare/src/services/p3chatservice.cc
+++ b/libretroshare/src/services/p3chatservice.cc
@@ -399,6 +399,12 @@ std::list<RsChatMsgItem *> p3ChatService::getChatQueue()
 		if(ca != NULL)
 		{
 			receiveAvatarJpegData(ca) ;
+
+#ifdef CHAT_DEBUG
+			std::cerr << "Received avatar data for peer " << ca->PeerId() << ". Notifying." << std::endl ;
+#endif
+			rsicontrol->getNotify().notifyPeerHasNewAvatar(ca->PeerId()) ;
+
 			delete item ;
 			continue ;
 		}
@@ -490,7 +496,7 @@ void p3ChatService::getAvatarJpegData(const std::string& peer_id,unsigned char *
 
 	std::map<std::string,AvatarInfo *>::const_iterator it = _avatars.find(peer_id) ; 
 
-	std::cerr << "p3chatservice:: avatar requested from above. " << std::endl ;
+	std::cerr << "p3chatservice:: avatar for peer " << peer_id << " requested from above. " << std::endl ;
 	// has avatar. Return it strait away.
 	//
 	if(it!=_avatars.end())
diff --git a/retroshare-gui/src/gui/PeersDialog.cpp b/retroshare-gui/src/gui/PeersDialog.cpp
index 561e28ae0..de5678a9e 100644
--- a/retroshare-gui/src/gui/PeersDialog.cpp
+++ b/retroshare-gui/src/gui/PeersDialog.cpp
@@ -178,16 +178,7 @@ PeersDialog::PeersDialog(QWidget *parent)
   menu->addAction(ui.actionCreate_new_Profile);
   ui.menupushButton->setMenu(menu);
   
-  QTimer *timerAvatar = new QTimer(this);
-  connect(timerAvatar, SIGNAL(timeout()), this, SLOT(updateAvatar()));
-  timerAvatar->start(1000);
-    
-  QTimer *timerstatus= new QTimer(this);
-  connect(timerstatus, SIGNAL(timeout()), this, SLOT(loadmypersonalstatus()));
-  timerstatus->start(1000);
-
   updateAvatar();
-  
   loadmypersonalstatus();
 
 
@@ -695,6 +686,14 @@ void PeersDialog::configurefriend()
 	ConfCertDialog::show(getPeerRsCertId(getCurrentPeer()));
 }
 
+void PeersDialog::updatePeersAvatar(const QString& peer_id)
+{
+	std::cerr << "PeersDialog: Got notified of new avatar for peer " << peer_id.toStdString() << std::endl ;
+
+	PopupChatDialog *pcd = getPrivateChat(peer_id.toStdString(),rsPeers->getPeerName(peer_id.toStdString()), 0);
+	pcd->updatePeerAvatar(peer_id.toStdString());
+}
+
 void PeersDialog::updatePeerStatusString(const QString& peer_id,const QString& status_string,bool is_private_chat)
 {
 	if(is_private_chat)
diff --git a/retroshare-gui/src/gui/PeersDialog.h b/retroshare-gui/src/gui/PeersDialog.h
index ca6e362f3..e280b1515 100644
--- a/retroshare-gui/src/gui/PeersDialog.h
+++ b/retroshare-gui/src/gui/PeersDialog.h
@@ -70,6 +70,7 @@ public slots:
   void displayInfoChatMenu(const QPoint& pos);
 
 	void updatePeerStatusString(const QString& peer_id,const QString& status_string,bool is_private_chat) ;
+	void updatePeersAvatar(const QString& peer_id);
 
 
 private slots:
diff --git a/retroshare-gui/src/gui/chat/PopupChatDialog.cpp b/retroshare-gui/src/gui/chat/PopupChatDialog.cpp
index d58db6978..90c92d5e6 100644
--- a/retroshare-gui/src/gui/chat/PopupChatDialog.cpp
+++ b/retroshare-gui/src/gui/chat/PopupChatDialog.cpp
@@ -304,11 +304,6 @@ std::cout << "PopupChatDialog:addChatMsg message : " << message.toStdString() <<
 	    qsb -> setValue(oldQsbValue);
 	}
 
-	if(ci->chatflags & RS_CHAT_AVATAR_AVAILABLE)
-	{
-	   std::cerr << "received msg saying an avatar for peer " << ci->rsid << " is available." << std::endl ;
-	   updatePeerAvatar(ci->rsid) ;
-	}
 	/*else
 	{
       ui.avatarlabel->setPixmap(QPixmap(":/images/user/personal128.png"));
@@ -648,6 +643,8 @@ void PopupChatDialog::changeStyle()
 
 void PopupChatDialog::updatePeerAvatar(const std::string& peer_id)
 {
+	   std::cerr << "popupchatDialog: updating avatar for peer " << peer_id << std::endl ;
+
 	unsigned char *data = NULL;
 	int size = 0 ;
 
@@ -665,7 +662,7 @@ void PopupChatDialog::updatePeerAvatar(const std::string& peer_id)
 
 	// set the image
 	QPixmap pix ;
-	pix.loadFromData(data,size,"JPG") ;
+	pix.loadFromData(data,size,"PNG") ;
 	ui.avatarlabel->setPixmap(pix); // writes image into ba in JPG format
 
 	delete[] data ;
diff --git a/retroshare-gui/src/gui/chat/PopupChatDialog.h b/retroshare-gui/src/gui/chat/PopupChatDialog.h
index 9a85eb706..ef8a3fc32 100644
--- a/retroshare-gui/src/gui/chat/PopupChatDialog.h
+++ b/retroshare-gui/src/gui/chat/PopupChatDialog.h
@@ -52,6 +52,7 @@ public:
   ~PopupChatDialog();
 
   void updateChat();
+  void updatePeerAvatar(const std::string&);
   void addChatMsg(ChatInfo *ci);
   
   void loadEmoticons();
@@ -106,7 +107,6 @@ private slots:
 private:
 
   void colorChanged(const QColor &c);
-  void updatePeerAvatar(const std::string&);
   void updateAvatar();
   void addAttachment(std::string);
 
diff --git a/retroshare-gui/src/gui/toaster/MessageToaster.cpp b/retroshare-gui/src/gui/toaster/MessageToaster.cpp
index ff75d9535..f8b237d9b 100644
--- a/retroshare-gui/src/gui/toaster/MessageToaster.cpp
+++ b/retroshare-gui/src/gui/toaster/MessageToaster.cpp
@@ -19,8 +19,6 @@
 
 #include "MessageToaster.h"
 
-#include "tools.h"
-
 MessageToaster::MessageToaster( QWidget * parent, Qt::WFlags f)
 		: QWidget(parent, f)
 {
diff --git a/retroshare-gui/src/main.cpp b/retroshare-gui/src/main.cpp
index 4aaf2bed3..d67230fce 100644
--- a/retroshare-gui/src/main.cpp
+++ b/retroshare-gui/src/main.cpp
@@ -145,12 +145,11 @@ int main(int argc, char *argv[])
 	QObject::connect(notify,SIGNAL(configChanged())                   ,w->messagesDialog   		,SLOT(displayConfig()                  )) ;
 
 	QObject::connect(notify,SIGNAL(chatStatusChanged(const QString&,const QString&,bool)),w->peersDialog,SLOT(updatePeerStatusString(const QString&,const QString&,bool)));
+	QObject::connect(notify,SIGNAL(peerHasNewAvatar(const QString&)),w->peersDialog,SLOT(updatePeersAvatar(const QString&)));
 	QObject::connect(notify,SIGNAL(logInfoChanged(const QString&)),w->networkDialog,SLOT(setLogInfo(QString))) ;
 
 	QObject::connect(ConfCertDialog::instance(),SIGNAL(configChanged()),w->networkDialog,SLOT(insertConnect())) ;
 	QObject::connect(w->peersDialog,SIGNAL(friendsUpdated()),w->networkDialog,SLOT(insertConnect())) ;
-
-	
 	QObject::connect(w->peersDialog,SIGNAL(notifyGroupChat(const QString&,const QString&)),w,SLOT(displaySystrayMsg(const QString&,const QString&))) ;
 
 	/* only show window, if not startMinimized */
diff --git a/retroshare-gui/src/rsiface/notifyqt.cpp b/retroshare-gui/src/rsiface/notifyqt.cpp
index 140f665a6..dd79b85dd 100644
--- a/retroshare-gui/src/rsiface/notifyqt.cpp
+++ b/retroshare-gui/src/rsiface/notifyqt.cpp
@@ -39,6 +39,12 @@ void NotifyQt::notifyErrorMsg(int list, int type, std::string msg)
 	return;
 }
 
+void NotifyQt::notifyPeerHasNewAvatar(std::string peer_id)
+{
+	std::cerr << "notifyQt: notification of new avatar." << std::endl ;
+	emit peerHasNewAvatar(QString::fromStdString(peer_id)) ;
+}
+
 void NotifyQt::notifyCustomState(const std::string& peer_id,const std::string& custom_state_string) 
 {
 	std::cerr << "notifyQt: Received custom status string: " << custom_state_string << std::endl ;
diff --git a/retroshare-gui/src/rsiface/notifyqt.h b/retroshare-gui/src/rsiface/notifyqt.h
index 90cae0056..01371d141 100644
--- a/retroshare-gui/src/rsiface/notifyqt.h
+++ b/retroshare-gui/src/rsiface/notifyqt.h
@@ -37,6 +37,7 @@ class NotifyQt: public QObject, public NotifyBase
 		virtual void notifyCustomState(const std::string& peer_id,const std::string& status_string);
 		virtual void notifyHashingInfo(std::string fileinfo);
 		virtual void notifyTurtleSearchResult(uint32_t search_id,const std::list<TurtleFileInfo>& found_files);
+		virtual void notifyPeerHasNewAvatar(std::string peer_id) ;
 
 	signals:
 		// It's beneficial to send info to the GUI using signals, because signals are thread-safe
@@ -54,6 +55,7 @@ class NotifyQt: public QObject, public NotifyBase
 		void chatStatusChanged(const QString&,const QString&,bool) const ;
 		void peerCustomStateStringChanged(const QString&,const QString&) const ;
 		void gotTurtleSearchResult(qulonglong search_id,FileDetail file) const ;
+		void peerHasNewAvatar(const QString& peer_id) const ;
 
 	public slots:
 
diff --git a/retroshare-gui/src/rsiface/rsiface.h b/retroshare-gui/src/rsiface/rsiface.h
index aa582e280..e7fc4d1f1 100644
--- a/retroshare-gui/src/rsiface/rsiface.h
+++ b/retroshare-gui/src/rsiface/rsiface.h
@@ -204,6 +204,7 @@ class NotifyBase
 	virtual void notifyCustomState(const std::string& peer_id,const std::string& status_string) {}
 	virtual void notifyHashingInfo(std::string fileinfo) { (void)fileinfo; return ; }
 	virtual void notifyTurtleSearchResult(uint32_t search_id,const std::list<TurtleFileInfo>& files) { (void)files; }
+	virtual void notifyPeerHasNewAvatar(std::string peer_id) { (void)peer_id; }
 };
 
 const int NOTIFY_LIST_NEIGHBOURS   		= 1;