Well, you haven't given any more information. I said you should check the source code for the urls for the images. You said you did and it looks like the thumbnail urls are the problem. But, you never clarified anything.
Try this:
Create a new style with no parent:
- Styles & Templates > Style Manager > Add New Style
- Parent Style: No Parent Style
- Title: Default vBulletin
- Allow User Selection: Yes
- Save
Then browse the site using that totally default vbulletin style - do you still have the same problem?
Try turning off the living avatar modification. Are the avatars correct then? If so, you really need to post in the living avatar modification thread for help.