Hey Punisher, welcome back. Did you go to User CP, then Edit Avatar on the left side? Then you have to select Use Custom Avatar Then enter the URL to your avatar or you can upload it to the server.
Hope this helps. If not, let me know, Ill test it right now. I might have to tweak a few more settings.
For some reason custom avatars for registered users were not activated. Go ahead and upload your custom avatar(s). Everything should work now. If you have any more problems, please let me know!