Here is an an actual code change that will work. Gizmo was close, but just needs to be a bit different and it needs to be general/default I've added it here as well so it should no longer break, unless someone just has a link to an avatar that doesn't exist.
Open up your cache_builders/featured_member.php script. Line 57, you'll see this:
Change that, so it reads:
if (!$avatar) {
if (!$style_array['general']) {
$style_array['general'] = "general/default";
}