BuddyPress.org

Go to admin side of your blog then click from left menu Settings -> Miscellaneous Settings
Set “Store uploads in this folder” to “wp-content/uploads”.
Set “Full URL path to files” to the REAL FULL PATH of your uploads. e.g “http://yoursiteblog/wp-content/uploads”

Go to wp-content/plugins/buddypress/bp-core/bp-core-avatars.php
Then change bp-core-avatars.php line 389

Replace:
if ( !$path = get_option( ‘upload_path’ ) )
$path = WP_CONTENT_DIR . ‘/uploads’;

With:
if ( !$path = get_option( ‘upload_path’ ) )
$path = WP_CONTENT_DIR . ‘/uploads’;
else $path = ABSPATH . $path;

Note: Take care for quotes you must remove and again add by yourself, otherwise you will get Warning: Division by zero …
Hope it will work perfectly for image upload and crop issue.