One of the cool features of Xbox Live is your custom avatar. You avatar reflects your personality and interests plus it gives your Profile a little chutzpah.
It was nice to see the Xbox Live avatar become integrated with Windows Phone 7 but for the most part, it just sits there. Sure, it will become animated from time to time but if you really want to put your avatar to work, you'll need Avatar Gadgets.
Avatar Gadgets is a collection of tools that gives your avatar a little more functionality. Need to flip a coin? There's a tool to have your avatar take care of the coin toss. Need to shed some light on the subject? There's a tool to equip your avatar with a flashlight (along with a brightness setting).
It's a nice novelty app to add to your Windows Phone to get a little more out of your avatar. My personal favorite is the Zippo Lighter app. Tap the screen and the flame goes out. To re-light the lighter, you swipe at the screen just as you would the real thing (nice sound effects as well).
For a novelty app, Avatar Gadgets is priced just right at $.99. Even if you scratch your head at the price, the gadgets are cool enough to make it worth the cost.
You can find Avatar Gadgets here (opens your Zune Desktop).