I am running the latest verison of the theme and the latest version of BP.
Under BP settings on the theme, I enable the option:
"Do you want to enable friend only privacy for user profile"
When I click on a profile in BP that I am not friends with I get the following error message:
Warning: Cannot modify header information - headers already sent by (output started at /home/belmonte/public_html/wp-content/themes/bp-community/members/single/home.php:12) in /home/belmonte/public_html/wp-includes/pluggable.php on line 934