Buddypress Activity Plus Thumbnails NOT SHOWING in activity feed. HELP!!

Hello Community!!

I have had this on going saga with BAP. I love this plugin and it is mandatory for ALL of my Wordpress/Buddypress membership sites. I have many questions and no answers. So maybe someone can help me.
Issue: I am unable to view the thumbnail of .gif images I post to my activity time line. There is a box with a "X" instead, no matter what browser I am using. When I click the "X", I am allowed to see the .gif. My only issue, is not being able to see the actual "thumbnail" in the activity feed. (hopefully that made sense). I ONLY have this issue with .gif images, which are a HUGE part of my membership websites. I am able to upload .jpg, etc files just fine. I have done the following to pinpoint the problem.

1. Installed BAP on a fresh updated version of Wordpress and Buddypress with NO other plugins added.

2. Use Buddypress Default Theme.

Now this is what I have concluded. I currently have multiple websites hosted on GoDaddy and Hostgator. When I perform the above task on GoDaddy, BAP works absolutely fine. But when I did this on my Hostgator website, I got the horrible "X". So there is obviously something I need to add to make this display correctly on the Hostgator hosted website. Does anyone know what that might be and where it needs to be added? Attached is a screenshot of the error I am receiving. I really like using two separate hosting companies since I have so many websites. In the event one company has downtime, my other sites will be productive.
Thank you in advance for your time community.
Have a beautiful week!
neatGEEK