Velvet Elvis or Fuzzy Painting is a picture of Elvis Presley. In the original Fallout, one can be found at the Alien Ship special encounter. Several exist in Fallout 2 in various locations, such as in the bar in Klamath behind a locked door.
Behind the scenes
The painting itself is a humorous reference to real-world Velvet Elvis paintings, and its presence near the crashed alien ship refers to widespread rumors and jokes about Elvis being still alive and living with aliens.