Originally Posted by KJAM
I can't speak for Latitude, but for Talk it does not sync with your contact photos. You should only see the photo that your Talk contact has uploaded for themselves. For example...if you tap the empty photo icon for yourself, you can choose a photo from your albums. The photo you choose will be seen by whoever you use Talk with. In reverse, you will only see a photo of one of your Talk contacts if they have chosen a picture for themselves. Thats why when you click on the empty photo box of one of your contacts nothing happens. Hope you understood that! Give it a try with one of your Talk contacts and see if it works. That's how mine is set up.
I'm fully aware of how its 'suppose' to work. I know that friends have to set photos on their end in order for them to display on mine, and vice versa. What I'm saying is that when they do so the changes are not reflected on my phone, like they are on a computer.
Since posting this I have noticed others are experiencing the same problem and there is no known fix for it. I would assume its something on Google's end, and its just a matter of waiting for them to release an update that addresses these issues.