http://www.dvlottery.state.gov/photo.aspx

The photo requirements of the DV program is apparently even stricter than the US passport photo requirements. For DV photos, shadows must be avoided on the face or background. I tried passport photo services of UPS, Fedex/Kinko's, and Walgreen's. They ALL give me pictures with shadows. Even the picture from a professional photographer shows a shadow. Another photographer told me that he can make it without a shadow but requires retouching with software (which is not allowed by the Diversity Visa program).

Where can I take a picture fulfilling the Diversity Visa requirement here in the US?

Thank you.

Check for immigration photo services. Don't overanalyze, they really only need a standard passport style photo.