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Thanks in advance for all that answer.
I installed the new updates to XOOPS 2.0.9.2 after that i can no longer upload avatars, Turned on debugging and this is the output i get
Warning [PHP]: move_uploaded_file(/home/bytesfo/public_html/uploadscavt41dcc2bbb71c6.jpg): failed to open stream: Permission denied in file class/uploader.php line 422
Warning [PHP]: move_uploaded_file(): Unable to move '/tmp/phpgIf39k' to '/home/bytesfo/public_html/uploadscavt41dcc2bbb71c6.jpg' in file class/uploader.php line 422