I'm working with a SharePoint 2010 farm that has SP 1 + the October 2011 CU installed. MySites and User Profile Synchronization with Active Directory were recently added. Everything seems to be working fine with the exception of loading user pictures. On the user profile page, when they click "Choose Picture," they get the error "Your personal site does not contain a picture library named 'Pictures'" on the Upload dialog. Does anyone have some insite on how to correct this problem?
Microsoft has confirmed this bug in the Oct 2011 cumulative update. According to this MSDN blog post the fix should be included in the Dec 2011 cumulative update and should be released around December 27th.
I've validated that this is resolved in the SharePoint Dec 2011 CU. Also, uploading pictures for other users via Central Admin has been fixed, which was purposefully broken in the June CU. You can find the links to the Dec CU updates here.
Microsoft changed the name from Pictures to "User Photos" in the October CU and the December CU does not fix the problem. They didn't update the error message either, so it still says it's looking for Pictures, but it's really looking for "User Photos". You can confirm this by looking at the code for the upload control in reflector.
Create a Picture library called "Users Photos" and your problems should disappear.