BuddyPress Avatar Error - Missing Temp Folder

as you all probably know, I'm starting this buddypress/wpmu for friends and family. I was on shared hosting, which was slow, but everything worked. NOW, I moved to a dedicated server and I'm loving it!!!

We moved all of our files from shared hosting to our dedicated server and although all of the old avatars show up; new members can't upload their avatars and the error message is, "unable to upload photo, missing temp folder"

I've consulted buddypress.org and most of the forum posts state that this is a wpmu problem. I'm running the latest trunk version of bp with wpmu.

I have GD2 image library installed along with ImageMagick; which were both enabled on my shared hosting plan. Basically trying to replicated what I had on shared hosting, but now with the speed of the dedicated server.

I've checked the php.ini file (seems right); GD2 and ImageMagick are enabled (I can see it through SSH).

I'm using Plesk Control Panel.

Basically people can create profiles, blogs, interact, make friends, and all the things it's supposed to do, it's just this avatar upload thing is taken me for a loop.

Do I have to "recreate a temp folder"? If so, where do I put it?

Thanks - the site is ndcom.com

Oh and as for my first forum post about the bp-dev.org plugins, they work, the youtube aggregator works as well as the auto-suggest - It works real well and looks pretty cool...