You already checked the permissions for Registered Users to make sure that they're allowed an avatar, right? I'm thinking it's likely not something that simple, though. Did you recently make any modifications? If so, have you tried disabling them, or removing them, to see if that has any effect?
Thank you... i will add rep now.. Im very Green when it comes to Vbulletin on the backend..Im learning as i go. Thanks for the tip -C
You're welcome. By the way, if it turns out that the Registered Users user group has avatars set to Yes on the permissions page, also check to make sure there are no other user groups you have your members automatically join that have avatars set to No.