It drives me crazy when things do not line up visually, and the K@ login with avatar enabled seemed to have some formatting issues in many of the templates I use. The MAIN problems was that the bulleted list of actions [ie: Add New Item, My Page & My Account] overlapped with the avatar and looked messy.

To fix this, I edited the file: /modules/mod_k2_login/tmpl/userblock.php

1) At around line 25 you should see a paragraph tag
2) Add a new line after that with a div tag, padded 70px [see attached file for example]
3) Around line 41 you should see an end ul tag
4) add a new line after that with and end div tag
5) save the file and check it in your browser

You can adjust the padding amount for whatever looks good to you. Also, if you fail to add the end DIV [step 4 above] it will wreak havoc on your template! Use at your own risk, and enjoy!

And i ask, it is not easy to edit the style.css file to reach the same thing????

(div.k2UserBlock ul {padding:4px 8px;margin:4px;list-style:square;})

Absolutely correct... I had not delved into the CSS for K2 to adjust things. In which case you can set the values to:

(div.k2UserBlock ul {padding:4px 4px 8px 70px;margin:4px;list-style:square;})