avatars - not changing avatar after crop

Hello

I am using avatars-3.4.0 on wpmu 2.8.6

I am logged in as admin, i can upload a blog avatar & user avatar. i confirm that they have uploaded to avatars/blog & avatars/user.

When i select crop, using either upload or alternate upload, it works with no errors & no confirmation that it has worked!

When i check again, the changes have not been saved! & no new avatar.
Details below, and i have made chmodd 777 changes to avatars dir

Pls advise?

#uploaded files
RewriteRule ^(.*/)?avatar/(.*) wp-content/avatar.php?file=$2 [L]
RewriteRule ^(.*/)?files/$ index.php [L]
RewriteCond %{REQUEST_URI} !.*wp-content/plugins.*
RewriteRule ^(.*/)?files/(.*) wp-content/blogs.php?file=$2 [L]
RewriteRule ^(.*/)?sitemap.xml wp-content/sitemap.php [L]