They're not included. They'll be released separately soon. You'll have to install them manually but it will be easy.
Coming soon from Co8 ... Custom Portraits Made Easy. This will be a 'portrait pack' of sorts, designed to make it easy for you to integrate custom portraits into the 5.7.x series of the mod. You won't have to edit any .mes files and will have to do only minimal or no image editing, depending mainly on if you've already got your custom portraits ready according to specifications or not. If you don't, the pack will come complete with templates for building your own portraits. You will be able to add up to 35 custom portraits, and it will all be automatically compatible with the Co8 mod. No more white mouse arrows and late nights of agonized reverse engineering attempts. Yay!
Great news. Good thing I saved all my downloaded stuff over the years. At least I learned how to use AdobePhoto in the process. But it came bundled with my laptop so I didn't have to pay for it.
Hey fellas, I was just randomly walking through my folders in explorer and came upon something special I downloaded millions of years ago, right after dinosaurs went extinct. I downloaded them because I was looking for awesome ad&d avatars and thought these ones were quite the thing. I remember getting them from some ad&d fansite or perhaps they were from an official site, I cannot recall because it was long ago. Anyways, these are them and some are especially cool while all of them in general are very very good... *edit* grrrr, the zip with them all in exceeds the 295kb restriction. It's 480kb zipped and 646 unzipped.
A couple of those, or more, are in the Royo secion of existing portrait packs I beleive, along with some other nearly nude ladies (and men).
There's a pretty good collection of 80 portraits (formatted for TOEE) at this website: http://toee.free.fr/portrait.html I used to use them quite a lot, before new extra ones appeared starting 5.5.0