Hi Isaac,
Thanks for the bug report. You are right the container div should have the same visible logic as the avatar control. I just fixed this in my copy so it will be fixed in the next release. You can also easily fix it immediately in your own copy by editing the file:
/Blog/Controls/PostList.ascx
line #63 looks like this:
<asp:Panel ID="pnlAvatar" runat="server" EnableViewState="false" Visible='<%# !disableAvatars %>' CssClass="avatarwrap authorinfo">
its needs to be changed like this:
<asp:Panel ID="pnlAvatar" runat="server" EnableViewState="false" Visible='<%# !disableAvatars && !displaySettings.HideAvatarInPostList && Convert.ToBoolean(Eval("ShowAuthorAvatar")) %>' CssClass="avatarwrap authorinfo">
Thanks,
Joe