Help making file smaller

Hey I want to make this my avatar but I can't seem to get the file small enough without completely killing the quality. I will email a psd file if someone wants it.

You should be able to use that file as is. Size limit for large avatars is 120KB, that file is only 50ish. In fact, the size limit is generous enough that K_A had a 150x150 animated avatar for a while.

If you're having trouble squeezing something for whatever reason, remember that the avatar space provided is actually round; making the undisplayed parts a single color or transparent aids the compression.