Don't worry about the pictures... it usually takes them a few weeks to warm up to you.. some fish don't like the camera.. some (like my "fish") LOVE the camera ;)
It does look like he has bitten his tail. What I would do is buy some aquarium salt (from petsmart, petco, or walmart.. whatever is convenient)... add the recommended amount (which I think is like 1tsp per gallon). Make sure you fully dissolve it before adding it bc the salt crystals can burn your fish if not dissolved.
Everytime you do a water change (doing one everyday 90-100% is best while he heals) add the same amt of salt.. DON'T add the salt unless you take the water out bc this salt doesn't go away unless you take the water out so you don't want to over salt your fish (he is a freshwater fish so too much salt is bad).
With the daily water changes and the warm temp he should start to heal in a few weeks. If you want you can also give him good food. Frozen brineshrimp or bloodworms are full of good nutrients (but some are a little queasy when feeding them so its all about your preference). Another forum I'm on has a great recipe. If you want I'll ask the poster if she minds me sharing the recipe. I'm not sure if linking to other forums is allowed here so if you want the recipe let me know and I'll PM you (that is if the other person is ok with me sharing her recipe).
The key is fresh water and patience. After using the salt for 10days I would stop (you don't want to use too much). After that just keep up with your water changes (my trick is 50% one day.. wait a day.. then 100% and clean the gravel the next day.. then wait a day.. then 50% again).. this keeps your water nice and fresh until you are able to upgrade his tank to a 2+ gallon.
I hope all this helps.