Initially, I thought it could have been cause by missing lines in .htaccess file, but since you have post images showing up in your subdomain blogs, I would double-check if code needs to be updated in your premium theme. Contact theme author for support.
Hmm, now that you mention it I’m seeing the same thing on my subdomain blogs (using a rev of 2010 theme on subblogs, wih bp-default/minor child customizations on my main site). Gravatars still show up, but not user defined avatars. My most notable change as of late has been BP 1.2.6.
@topracer, what bp rev are you running?
I’m running BP 1.2.6 – and I’ve found a few threads – namely that the changes in that ver are affecting things like avatar images and double “Frienship Request” buttons (among others). This seems to be on a theme-by-theme basis. You’ll need to get an update of your theme which should fix the problems….. Im using some from WPMUDev.com and they expect to have the theme updates out shortly.
I’m seeing this issue within the Admin Bar on my sub-domains, too. I don’t think it’s that related to the sub-themes. The source for the avatar has changed from ‘/wp-content/uploads/avatars/…’ to ‘/files/avatars/…’. Hopefully it’s a just a bug.
Can anyone with 1.2.6 knowledge comment on this? What is this new path structure? Bug?