RE: i can't see any display pictures
Does it look like the old style contact list where the status icons are small? or is it the newer one where the status icons are big?
If they are small you need to enable 2 things.
First click the Up/Down arrow above the contact list and click Show Details
Then Tools > Options > General > Check Show Display picture from others
If they are big status icons just try this part
Tools > Options > General > Check Show Display picture from others
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