Oh besides what IAN stated I think I see what the problem is.
When you add the paths you have two fields to enter.
Avatar Upload Storage Directory:
This should be your absolute path like
/home/yoursite.tld/public_html/forums/images/avatars
not like
http://www.illusionarylabyrinth.net/forums/images/avatarsFor a hint for your absolute path look at
Control Panel ยป DB, Paths & URLs
This is what would appear when you test not
http://www.illusionarylabyrinth.net/forums/images/avatarsThen enter the :Full URL to Avatar Upload StorageDirectory:
http://www.illusionarylabyrinth.net/forums/images/avatarsDarn Rick you beat me to it.