Chella: Wonderful pic! I always thought the first thing a new Avatar would do is check out their own junk! lol. anywho, for those who are interested. When Na'vi meld their "que" it just connects their brain stem(the little pink feelers) and so they can have an intimate connection of senses and thoughts, nothing else. James Cameron(the creator) said "they mate as you would expect any other mammal to". So there you have it, male Na'vi have some form of penis. Again love the picture! Thanks for posting!
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I think it was established canon that they link up that way when mating as well.
@fishmonger:
Funnily enough I have seen people compare those scenes to rape