This is a cool feature. However, I wanted the newpm.gif image to be right next to Welcome, Member. section in the navbar. So, I tweaked on the supplied code to make it display the way I wanted.
For those of you that are interested, here is the code.
Find in navbar template
Code:
<strong><phrase 1="$bbuserinfo[username]">$vbphrase[welcome_x]</phrase></strong><br />
Then place the following code (red) in the middle of that string
Code:
<strong><phrase 1="$bbuserinfo[username]">$vbphrase[welcome_x] <if condition="$bbuserinfo['pmunread']">
<a href="http://www.yourwebsite.com/forum/private.php?$session[sessionurl]"><img src="$stylevar[imgdir_misc]/newpm.gif" alt="You have a new PM" border="0"></a> </if></phrase></strong><br />
I removed the <td> tags to keep the newpm.gif inside the same cell as welcome_x