OK, Fixed this issue by re-installing WP from the backend (one click “Re-install now), and setting permissions of /avatars/ to 777. All is well. Oddly, I then dialed permissions back to 755 and everything is still fine.
Hi, I am having this error too. Received it when trying to upload an avatar.
Upload Failed! Error was: Unable to create directory wp-content/blogs.dir/1/files/avatars/2315/avatars/2315. Is its parent directory writable by the server?
Is the duplicate looking url an issue? (/avatars/2315/avatars/2315)
This is a root install of WP 3.7.1, sub-directory multisite, BP 1.8.1. No bp-custom.php