BuddyPress.org

I am using the latest versions of WP 3.6 and BP 1.8.1 using extended profiles. I am using the suffusion theme.
When a new user signs up the registration process is working except for the final avatar upload step. After they click the “Complete Sign Up” button they come to the “Sign Up Complete!” page. The email is successfully sent and allows them to activate their account, but the final step “Your Current Avatar” is not working.
When users browse for an avatar and click the upload image button, the avatar is not uploaded to their profile. They can upload an avatar once they log into their new account from the profile page, but cannot do it in the final step of registration.
Is there a setting in BP that I need to enable to make this work? Or do I need to install an additional upload plugin to enable cropping. I noticed that the BP uploader in the profile has a cropping tool where the same uploader in the registration step does not.