A video I found said to drop them in the portraits folder, but I can't find it?

It doesn't exist by default. Just create one in the main installation folder, like so:

\GOG.com\Neverwinter Nights Diamond Edition\portraits

but how will the game know to import from that folder?

is it preprogramed

Yes. All Infinity engine games use the same format (Baldur's Gate et al).

okay, I made a folder and dropped in a picture....ow what, it didn't appear in the portrait list

It needs to be in specific file format.
http://nwn.wikia.com/wiki/Portrait

how do you activate console commands?

Press the 'BackTick' key -- the one to the left of the '1' key. It is often called the 'Tilde' key, but this is not strictly true, unless you have a US keyboard. Top left in the image.

` this?

OK. So I have the gog install for NWN and i created a portraits file and loaded it with a ton of custom portraits... And NWN will not show me any of those when i go to create a new character. Can anyone enlighten me as to why this is? Or at least a possible reason with a potential soluion. Thanks

This article explains it perfectly: http://www.neverwinternights.info/portraits.htm

You have to make sure the files are the correct size, and you have to name them correctly, and you have to save the files in 24-bit targa (.tga) format.

I followed the directions in the above link and it worked like a charm. The image was added at the end of all the preset portraits.