The Xbox Engineering Blog is usually way too technical for most gamers to get into. Occasionally, however, a technical look at a topic will reveal some interesting (and hilarious) stuff. Check out this tidbit from "Xbox LIVE Avatar Technology."
The post, written by Dan Kroymann, covers all the ways in which the Xbox 360 manipulates avatar data to correctly display the adorable Rare avatars both in Live and in games that feature avatar support. The avatars themselves are actually pretty complex, even when compressed by fancy algorithms -- so it's not hard to imagine that sometimes things go wrong.