UBB.threads PHP Forum Software Community Forums Resources and Customizing How Do I? Avatars! WTH?

I have had this software for over a year now and still have not figured out the avatar deal. You create a directory then it says it's not there. WTH? What directory do you use and where the hell does it go? I am still using 7.5.5. I have not put the board up yet for the 1000th time till I get this figured out......