Hey mercime!
I didn’t even realize you had responded. I was actually able to get it fixed today. I just went ahead and edited the bp.css file in the BP template manager. I just added a padding above and below the avatar and it worked.
I added it and it gave me one avatar for the first comment. I am not sure how to add it so that it shows the avatar for each comment.
Thanks Esmi. My bigger question now, is where in my code do I put following?:
<?php echo get_avatar( $id_or_email, $size, $default, $alt ); ?>
In my case, the settings showed up on the individual page instead of the plugins admin area.