Worms on XBLA will have Avatar support, is titled Worms 2: Armageddon
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Team17 has posted some XBLA Worms information on its Facebook page.
Apparently, the new game's now called Worms 2: Armageddon, and includes Avatar support and vertical levels.
The upcoming PSN Worms game will be an expanded port of the current XBLA offering, with improved physics and 1080p display.
More through the link, along with pretty pictures.