When I call the following code:
echo get_avatar(
get_the_author_meta('user_email'),
'70',
get_bloginfo('template_directory')."/images/default.png"
);
It generates the following:
[http://1.gravatar.com/avatar/f456a030d4086504d0796f0134139410?s=70&d=http%3A%2F%2Fblogs.com%2Fscience-and-medical%2Fwp-content%2Fthemes%2FBlog%2Fimages%2Fdefault.png%3Fs%3D70&r=G][1]
It is adding to the end of the default URL:
%3Fs%3D70
This prevents it from working and always returns the default image. If you remove the extra data from the URL it works.