This post assumes that:
- You have at least got the October 2010 CU
- Photos are stored in the thumbnailPhoto attribute in Active Directory (See here for instructions)
- The User Profile Service Application is configured
- There is a synchronization connection to your Active Directory
In Central Admin navigate to Manage Service Applications then select the User Profile Service Application from the list and click on manage from the ribbon.
Now select Manage User Properties from under the people heading. Once the page has loaded scroll down to and click on the Picture property. Select Edit from the drop down.
On the Properties page make sure
Click add followed by OK.
Finally the Update-SPProfilePhotoStore cmdlet to re-size the the photos so that they can be used in all the right places around SharePoint.
Open the SharePoint 2010 Management Shell with a user account that has the correct privileges to administer SharePoint and type the following.
Update-SPProfilePhotoStore -MySiteHostLocation http://my.domain.com/-CreateThumbnailsForImportedPhotos $True
Once the above command has completed successfully then users photo should now be displayed on their My Site Profile page.