I'm using CB 1.1 and Joomla 1.5 RC3. After turning on SEF URLs the avatar images disappear. I looked at the URL to the avatar image and it has an extra directory attached to it after the image name. The attached directory is the name assigned to the menu item that was created to link to the CB component.
For example, if the menu item is "Profile" /profile/ is appended to the end of the URL that should be displaying the image. With the menu item unpublished, /component/comprofiler is appended.
Seems that it would be easy to fix this by adjusting the code that creates the URL to display avatar images. Gallery images are working. I've searched through comprofiler.html.php but haven't been able to find it yet.