In the New User Status area, in the image field, what image have you set? Please note that this should be a full URL to the image (
site.com/link-to-image.jpg), and the image must be at least 50x50px (I believe).
If that still doesn't work, can you post the link to the image you want to use, and we'll try to figure out if there may be any issues with that image.
Thanks,
Alex