I do believe in God and I will answer any question pertaining to my belief. However, I will only answer questions that will are being asked in order to gain knowledge, or perspective. Any question that contains any connotation of mean, sarcastic, mocking, will be ignored.
So with that being said.
There can be two answers to this question. One answer is of the physical image of God. The second answer is of the spiritual image of God (the answer most scholars agree with).
1) Most people think about the physical image when people say "Made in the Image of God." First we must ask, why are thinking physically? Well because, we are human. And being human usually means looking at the appearance of things before looking at anything else. In order to understand why everyone looks different but come from the same God we must first establish a few things. The first thing is that God is infinite. The second thing is that God, being infinite, is way beyond our (finite beings) own understanding. Once we establish these things we can proceed to say that because God is infinite, he can look like everyone and yet look like one. Though this might not make any sense. How can someone look like everyone but be uniquely one person also? We have to go to the second rule we established. God is beyond our own understanding. With that being said we must accept this answer as it is. No question. No argument, because, well we can't.
2) The second answer. This answer will leave most people more satisfied. As we know the Bible must be taken both literal and metaphorical. This means we must take into account, read and analyze every word in the Bible to see if the writer was being literal, or being metaphorical. When stated, "man is made in the image of God", we can also take on the metaphorical side. This side makes more sense and satisfies more people with its answer. Before I go on, you must understand that God is everything. He is both merciful and just. He is both filled with joy and wrath. He is everything. So if we can understand this we can proceed. The fact that God is everything is infact and image of himself, is it not? For example, Elvis Presley was called the King of Rock and Roll. That was his image, he WAS that. So to say God is strong, that is his image, he IS that. But God is also gentle, that is his image, he IS that. There are many kinds of people in this world. You have the strong, the wise, the gentle, the kind-hearted, the light-hearted, the nurturing, the wrathful, the vengeful, the loving. You have all these kinds of people, and God made these people. These people ARE these traits, and so is God. So does this not fulfill, "man is made in the image of God."? There are two types of man, woman and man. The man represents half of God's image, and the woman the other half. The man is strong, he goes into battle, he fights, he works and labors, he provides. The woman is nurturing, gentle, kind, loving. Both man and woman together make "the image of God". Which also supports the statement (of when a man and woman get married), "the two will be one flesh".