]1) new template home_avatar should be like this:
Code:
<img src="$bburl/$newsavatarurl" border="0" align="left" vspace="3" width="40" height="40">
instead of
Code:
<img src="$newsavatarurl" border="0" align="left" vspace="3" width="40" height="40">

Otherwise it works great!

Bug with avatars is gone, YaY!
2)The only last problem I have is damn smilies. If I made a smilie in the news post it will be be not show on the main page in the news column as it links to wrong folder. All other images/avatars works as they should do.
I have tried to search after smile/smilie/smilepath etc to replace that string to the full path, but got no luck