Avatar Plugin-just get question mark

I have installed the avatar plugin.
The avatar selection shows up in the admin bar for user and blog
When I click on it, it pulls up the screen that says load avatar image
I load an image (have tried different formats, and the two different upload options) and it takes me to the crop screen.
I crop the image and then save the crop.
It then takes me back to the upload image screen and in thebox where my new avatar should be is a blue square with a question mark in the middle.
It is doing this with both user and blog
I have double/triple checked my installation
What can be wrong?

my wpmu site is onlineaor.com