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Have you tried this? Also check your settings page to make sure the paths are correct. I'm assuming you are saving to the file system. Finally permissions can cause problems. You can see if they've uploaded. Have a look in the path that you set in Settings to see if the images have uploaded. They are organised by user ID.

I tried the above and i can confirm that it is a javascript error. The error is

"JQuery("#profile_file_upload").uploadify is not a function

/plugins/wp-symposium/js/wps.min.js?ver=3.3.2   Line: 1"

What do i do to fix the problem?

Uploadify is not loading, which I reckon your theme or another plugin is loading some javascript which is either clashing, or causing it not to load.

Did it work with TwentyEleven theme and just WPS plugins activated? Follow the steps here and see where you get to, that will identify the theme or plugin that is clashing, and something could then be done.

Let me know how you get on, although it's bedtime in the UK, so will catch up tomorrow. 

I tried the twenty eleven theme and it worked with that theme.

Ok, so your theme is probably loading a copy of jQuery UI, or some other Javascript file, that's causing a clash.

Look through your theme files (search your theme files for ".js") and try commenting out where JS files are loaded. Two ways you can approach this, comment them all out, if the WPS plugins then work, re-activate them until it stops. Or try removing one at a time, in the hope that one will be causing the problem.