I've just installed this on a fresh version of vB3 (it was tested on vB3 Beta 5 and a modified vB3 prior), and the installation was flawless.
Boofo, make sure you run the "Rebuild profile picture thumbnails" from
admincp/albumcp.php?do=approve. This is required at first, and consequently every other time you change the dimensions of the attachment thumbnail size.
Then clear your browser internet cache, and restart the browser. The browser probably handles the stream of the image a bit more funky since it's from the database, rather than a file on the server. Therefore it might not be updating properly unless you clear your cache.
You say the avatar doesn't show, also?
How does your forum handle custom avatars? Uploaded into the database, or are they stored in a folder?