Yeah it's been like this since for a while.
It's not aesthetically pleasing but it works so I'm not too concerned.
I'll contact the developer since I see him on GTalk all the time. By the way, I just tested a new beta he sent me of handcent a few hours ago which has full facebook picture support now. It use to always display facebook display pictures even if you manually set the google picture on your contact list.
Now it updates depending on which picture is set on the contact list.
I'll talk to him about the popup issue in a few minutes.