UPDATE: It's working now. I guess the settings weren't right

When a user uploads a profile image, their avitar only shows as the pending_n.png placeholder image.

I have tried uploading several image files of various sizes and dimensions. In the backend I can see the last image that the user uploads sitting next to the pending_n.png. If I click "approve image" it says I get an alert saying "not authorized". I have 'Require Upload Image Approval' set to NO, anyway so that shouldn't be required.

I have tried with both ImageMagick and GD2 Libraries. Both are detected (green) but neither one helps.

Joomla 2.5.4
CB 1.8
CB Subs 2.0.1
PHP 5.2.17
MySQL 5.0.77
Ioncube loader on