Thanks I am looking into the issue.

Installing Tidypics won't fix this issue for sure. Tidypics comes with it's own image upload and processing mechanisms but this won't affect uploading of avatars at all. So, if avatar uploading fails it will also fail with Tidypics installed.

The uploading of avatars could fail

• because the GD php extension is not installed or at least not working correctly,
• php variables (in php.ini or Elgg's .htaccess) are set too restrictive. Does it work when trying to use a very small image as avatar? If this works, then you would have to increase at least post_max_size and possibly also memory_limit to allow for processing of larger image files,
• permission issues with data directory. Can you upload any file (no image file) using the Files plugin? If the non-image file can't get saved and then again downloaded afterwards there is a problem with the permissions of the data directory preventing not only image files / avatars getting saved,
• Conflict with another 3rd party plugin. Try uploading of an avatar will ALL 3rd party plugins including your theme plugin disabled. Does it work then? If yes, the problem is caused by at least one of the 3rd party plugins you use and you would have to test which one by enabling them one by one at a time until you find out which plugin is causing the avatar handling to fail.

I have checked point number 2 and 3 already. Will confirm problems stated in point 1 and 4....