Hi there
The reason why it does not show up in member's admincp navigation is because there is a slight error in your cpnav_living_avatars.xml file. I have highlighted in purple what needs to be altered to correct this.
Code:
<?xml version="1.0" encoding="ISO-8859-1"?>
<navgroups product="djs_la_usercp_admincp">
<navgroup text="Living Avatars" displayorder="185">
<navoption displayorder="10">
<phrase>la_acp_groups_and_items</phrase>
<link>../living_avatars/admin/groups_and_items.php</link>
</navoption>
<navoption displayorder="20">
<phrase>la_acp_install_new_items</phrase>
<link>../living_avatars/admin/install_new_items.php</link>
</navoption>
<navoption displayorder="30">
<phrase>la_acp_settings</phrase>
<link>../living_avatars/admin/settings.php</link>
</navoption>
<navoption displayorder="40">
<phrase>la_acp_theme</phrase>
<link>../living_avatars/admin/theme.php</link>
</navoption>
<navoption displayorder="50">
<phrase>la_acp_admins</phrase>
<link>../living_avatars/admin/admins.php</link>
</navoption>
</navgroup>
</navgroups>