I am highly annoyed that they have not yet fixed the bug that causes all userpics and shit to be broken in S1 custom styles.

For some reason, they aren't broken in my custom S1 style. I can see they are broken in yours, though.

I have no idea why, except that your usericon's URL is given as <http://http://www.livejournal.com/userpic/2525188/106288>.

Have you tried removing the http:// from your style.