I found a previous post with the same issue, but not quite sure I am getting what I am supposed to. I am running version 04.09.04. In the other post I found, it said to go to File in the top right corner and give Registered users permission to write to the folder. Problem is, I don't see the folder that the message is referring to. In fact, I only see two folders. Portal Root and beneath that Templates. The folder did not exist by viewing through FTP either. I created the folder via FTP and made sure the appropriate permissions were applied and I still get the same message. I hope someone has some ideas to help. I have been experiencing a plethora of issues since installing, but would really like to stick with this portal and that it has to offer. Thanks in advance.

An Error Has Occurred When Attempting To Save The File *\forums\Portals\0\Forums\UserAvatar\142.gif. Please Contact Your Hosting Provider To Ensure The Appropriate Security Settings Have Been Enabled On The Server.

 Thank you very much. This solved my issue