BuddyPress.org

Hey,
I have setup buddypress and have noticed that when i goto ‘change avatar’ in the profile options and upload then crop, nothing happens. Buddypress just keeps using the mysteryman /default avatar.

I have tried the following:
– switching back to the buddypress test theme
– disabling all plugins
– checked GD is installed on the server
– made sure wordpress, buddypress and all plugins are fully up to date
– checked wp-content/uploads/avatar and the images are definitely there. Although they are in their original uncropped state.

I have now disabled gravatar completely and now buddypress is using the following image as default ( http://unit23skatepark.co.uk/wp-content/themes/unit-23/_inc/images/bp_default_avatar.jpg )

I have searched google high and low for answers but can’t seem to find a solution.
Anyone have any ideas at all.
It would be much appreciated!