I have gone into the "about me" settings on my laptop and chosen a picture from those included in the release. This appears to have created the .face file in my home directory, however the image is not displayed by the face browser at the login screen.
There are few duplicates of this report. The problem is that by default directories don't get created with enough permissions for gdm to read the faces. We need to move the face out the home directory medium term. Potentially we could tunnel the image data through the root running part of gdm in the mean time, but it hasn't made it to the top of either my or Jon's priority list.
*** This bug has been marked as a duplicate of bug 447430 ***