Avatar Plugin does not upload files to server

I followed the instruction in the install file, and also chmod all the files to 777.... If I place the file in the folder directly I will be able to crop it but it does not make the different sized files. If I try to upload the file through the widge I get the following error:

Warning: getimagesize(http://coutureline.com/avatar/heidi-klum-arena-scan-06.jpg): failed to open stream: HTTP request failed! HTTP/1.1 404 Not Found in /home/couturel/public_html/wp-content/mu-plugins/avatar.php on line 244