I've found this too, especially after I removed some of the contact fields (http://wordpress.org/support/topic/remove-some-profile-fields?replies=25).
The answer is very simple, and just relies on tweaking the CSS for the plugin.
From the control panel, choose Plugins > Editor on the left.
Then choose the User Avatar from the dropdown on the right.
Select the .css file.
Scroll down to the fifth CSS style declaration. It will look like this:
margin: 0 auto;
padding: 0px 20px 20px 20px;
All you need to change are 'top' to 425px and 'right: 180px' to 'left: 720px'. This means the avatar box floats 425 pixels from the top, and 720 pixels from the left of the window. This should locate it just below the 'Username cannot be changed' bit.
Hope that helps!