It didn't give me an error when it uploaded, it just didn't work. When I look at my profile it then gives me that location.
The folder can be anything you want it to be. Just ftp into your site and create a new folder. On this site it is in /forums/files/ so I'll just use that as my example. Once you have created it make sure that the folder is set to allow read and write permissions.
Then go to "DB, Paths & URLs" and click on the "Paths & URLs" tab. Copy your "Absolute PATH to Main Directory" and paste that into "Avatar Upload Storage Directory" under "Profile Settings". I am assuming that it will end with /forums/ so just add files to the end of it and hit "click to test directory"
"Full URL to Avatar Upload Storage Directory" would be
http://www.campingpa.com/forums/files
