Avatar doesn't scale

I am using
WordPress 3.0.1
Add Local Avatar Plugin

and a strange thing is occurring that I was hoping someone could help shed some light upon. The Avatar images are not scaling down. Avatars are re-sized at upload to 80×80. When they are displayed with a post or a comment they should be different sizes. And with the parameters in the image tag everything checks out but the image size on the page doesn’t change.

For example:
If you go to the main page you will see the avatar by the post title. It is 80×80 but if you look at the image tag in the page’s source code you would see:
<img alt='Thornore' src='/wp-content/uploads/avatars/thornore-avatar.png' class='avatar avatar-40 avatar-default' height='40' width='40' />
But still it displays at 80×80. Strange, right?

On another site of ours I have even taken the returned code, exploded it on the quotes, to just have the image path, and rebuilt the image tag thinking it had something to do with a class… or something… but no change.

So, yeah… any help would be appreciated…
Thanks.