Uploading avatar from the frontend

Question

in the codepad link you can find what I am using to edit profile from the front-end. http://codepad.org/QJjDEA7p

The code is working (which I got from How to edit a user profile on the front end? and change some things for me to work correctly).

I have installed Simple Local Avatar plugin to allow avatar uploading, but how can I modify the code to have it also from the front-end ? I found these below, which I tested, showed the upload button, did not showed the current avatar and didn't let me to change it.

Thank you for your help on this.

do_action('show_user_profile');
do_action('edit_user_profile');

do_action('personal_options_update');
do_action('edit_user_profile_update');

UPDATE

There goes a 50 bounty for a working example. Unfortunately I can not get Bainternet's example to work that I tested with User Avatar plugin also, and I am really stuck with this issue can't finding the solution.