This is what I get:

Directory does not exist!
Test failed. Either the directory was not found or cannot be written to by the web server.

(the directory is there)

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These are my settings:

Administrators 1
GlobalModerators 1
Moderators 1
Users 1
Guests 0

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Still don't understand why I was moved down to #2, doesn't make a lot of sense to me.

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In UBB6?? there was a full size pic in the profile, but if that's been changed to an avatar, ok, but they don't all show up and I have no idea why.

Ruben I really appreciate your help!