Because the new forum software has two ways of applying templates, the default template set in the main forum control panel, seems to be overwritten by the individual template options available in your new member control panels.
So if you are having any problems please try this as it should fix 99% of all current forum issues.

If you can't see pictures and avatars.
go to your control panel (user cp)
Click Profile.

Then select Options.

confirm your password.

scroll down to the bottom where it says:
'which template would you like to use. '

And select: forum default.
OR             Old yabb style 2.1 modded

And that should sort it.

I personally prefer the: 'old yabb style 2.1 modded' template - more stuff seems to work as it should, but either option should be okay

yeah I know about those.

At some point I'll sit down and re-upload all the pictures and template files with different initial permissions.

I'm thinking about changing lariat man to katal hyuk man anyway - poll upcoming

I know it says 100k limit. But realistically that's way way too big

It's the actual pixels you need to count. basically avatars are tiny. 
Around 50x100 pixels.
Try resizing and uploading again.

I have moved this to Administrative so it no longer appears in the Important Topics of every board on the forum.  The information seems to be old and no longer needed.  I moved it rather than deleted though in case it is ever needed again.  I think this is a better place for it at the moment.