I added this to my functions.php
// --------------- GraceBlogger Custom Comment -------------------- //
function graceblogger_comment($comment, $args, $depth) {
$GLOBALS['comment'] = $comment; ?>
<li <?php comment_class(); ?> id="li-comment-<?php comment_ID() ?>">
<div id="comment-<?php comment_ID(); ?>">
<div class="comment-container">
<div class="comment-head">
<div class="avatar">
<?php echo get_avatar($comment,$size='36',$default='<http://www.tillhecomes.org/wp-content/themes/StandardTheme_261/admin/images/blank-gravatar.jpg>' ); ?></div>
<span class="name"><?php printf(__('<cite class="fn">%s</cite>'), get_comment_author_link()) ?></span>
<span class="date"><?php printf(__('%1$s at %2$s'), get_comment_date(), get_comment_time()) ?></span>
<span class="edit"><?php edit_comment_link(__('(Edit)'),' ','') ?></span>
<span class="perma"><a href="<?php echo htmlspecialchars( get_comment_link( $comment->comment_ID ) ) ?>"> #</a></span>
<div class="fix"></div>
</div>
<div class="comment-entry"><?php comment_text() ?></div>
<div class="reply">
<?php comment_reply_link(array_merge( $args, array('depth' => $depth, 'max_depth' => $args['max_depth']))) ?>
</div>
</div>
</div>
<?php
}
And then changed the code in comments.php to call the function.
<ol class="commentlist">
<?php wp_list_comments('avatar_size=36&callback=graceblogger_comment&type=comment'); ?>
</ol>