This may be a different situation than this, but I actually came across this blog post yesterday:
http://www.roniloren.com/blog/2012/7...your-blog.html
This girl was contacted by the photographer of the photo she used. Is the notice you got from the owner of the photo? I do think your situation is a bit different since the photo was generated... That's weird. I'm not much help, I've never blogged and I don't know much about it