FOUND THE BUG/FIX

In scripts/changebasic.inc.php

Find:
Code
$imagehw = getimagesize("{$config['UPLOADED_AVATAR_URL']}/$Picturefile");

Replace with:
Code
$imagehw = getimagesize("{$config['UPLOADED_AVATAR_PATH']}/$Picturefile");

Basically it is a typo, changing 'UPLOADED_AVATAR_URL to 'UPLOADED_AVATAR_PATH.

Change this 1 line, resave the file and your gold, no need to change or remove any of the size stuff anywhere else.

Fred