Yeah, I installed the latest version.
We found out part of the problem (Lynne and I)
When the product is disabled, it looks for noavatar.gif, but when it is enabled, it is getting the avatars from:
http://profile.ak.facebook.com/v228/...15507_3384.jpg
Thus showing the wrong avatars.
This is really causing me trouble and if this is not sorted, I will have to uninstall this feature, which I really dont want to do