Solved SOLVED Kunena 3.0.5 w/Joomla3.3.1 cannot upload images.

Hi folks, I've been searching for answers on this for 2 days now and I'm not finding anything that works. We still cannot upload images or avatars on our new forum.

Is there a bug that arises when Joomla 3 and Kunena 3 are used together like this? Because I have other sites running Joomla 2.5.x with Kunena 3.0.5 and they upload images and avatars all day long. And they are all on the same server with the same settings.
I do not have gravatar enabled.
I have no added extensions what so ever, none. In fact Kunena is the front page of the site, there is absolutely nothing else added to this install.
Third-party components: None
Third-party SEF components: None
Plugins: None
Modules: None

Database collation check: The collation of your table fields are correct

Joomla! SEF: Enabled | Joomla! SEF rewrite: Disabled | FTP layer: Disabled |

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htaccess: Missing | PHP environment: Max execution time: 30 seconds | Max execution memory: 64M | Max file upload: 10M

Kunena menu details:

Warning: Spoiler!

ID	Name	Menutype	Link	Path
114	Forum	kunenamenu	view=home&defaultmenu=116	forum
115	Index	kunenamenu	view=category&layout=list	forum/index
116	Recent Topics	kunenamenu	view=topics&mode=replies	forum/recent
117	New Topic	kunenamenu	view=topic&layout=create	forum/newtopic
118	No Replies	kunenamenu	view=topics&mode=noreplies	forum/noreplies
119	My Topics	kunenamenu	view=topics&layout=user&mode=default	forum/mylatest
120	Profile	kunenamenu	view=user	forum/profile
121	Help	kunenamenu	view=misc	forum/help
122	Search	kunenamenu	view=search	forum/search
123	Forum	mainmenu	Itemid=114	kunena-2014-06-30
124	Main	mainmenu	view=home&defaultmenu=114	hi-there

Joomla default template details : protostar | author: Kyle Ledbetter | version: 1.0 | creationdate: Unknown

Kunena default template details : Blue Eagle | author: Kunena Team | version: 3.0.5 | creationdate: 2014-03-09

Kunena version detailed: Kunena 3.0.5 | 2014-03-09 [ Invecchiato ]
| Kunena detailed configuration:

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Kunena config settings:
board_offline	0
enablerss	1
threads_per_page	20
messages_per_page	6
messages_per_page_search	15
showhistory	1
historylimit	6
shownew	1
disemoticons	0
template	blue_eagle
showannouncement	1
avataroncat	1
catimagepath	category_images
showchildcaticon	1
rtewidth	450
rteheight	300
enableforumjump	1
reportmsg	1
username	1
askemail	0
showemail	0
showuserstats	1
showkarma	1
useredit	1
useredittime	0
useredittimegrace	600
editmarkup	1
allowsubscriptions	1
subscriptionschecked	0
allowfavorites	1
maxsubject	50
maxsig	300
regonly	1
pubwrite	0
floodprotection	0
mailmod	0
mailadmin	0
captcha	0
mailfull	1
allowavatarupload	1
allowavatargallery	0
avatarquality	75
avatarsize	2048
imageheight	800
imagewidth	800
imagesize	3M
filetypes	txt,rtf,pdf,zip,tar.gz,tgz,tar.bz2
filesize	120
showranking	1
rankimages	1
userlist_rows	30
userlist_online	1
userlist_avatar	1
userlist_name	1
userlist_posts	1
userlist_karma	1
userlist_email	0
userlist_joindate	1
userlist_lastvisitdate	1
userlist_userhits	1
latestcategory
showstats	1
showwhoisonline	1
showgenstats	1
showpopuserstats	1
popusercount	5
showpopsubjectstats	1
popsubjectcount	5
usernamechange	0
showspoilertag	1
showvideotag	1
showebaytag	1
trimlongurls	1
trimlongurlsfront	40
trimlongurlsback	20
autoembedyoutube	1
autoembedebay	1
ebaylanguagecode	en-us
sessiontimeout	1800
highlightcode	0
rss_type	topic
rss_timelimit	month
rss_limit	100
rss_included_categories
rss_excluded_categories
rss_specification	rss2.0
rss_allow_html	1
rss_author_format	name
rss_author_in_title	1
rss_word_count	0
rss_old_titles	1
rss_cache	900
defaultpage	recent
default_sort	asc
sef	1
showimgforguest	0
showfileforguest	0
pollnboptions	4
pollallowvoteone	1
pollenabled	1
poppollscount	5
showpoppollstats	1
polltimebtvotes	00:15:00
pollnbvotesbyuser	100
pollresultsuserslist	1
maxpersotext	50
ordering_system	mesid
post_dateformat	ago
post_dateformat_hover	datetime
hide_ip	1
imagetypes	jpg,jpeg,gif,png
checkmimetypes	1
imagemimetypes	image/jpeg,image/jpg,image/gif,image/png
imagequality	50
thumbheight	32
thumbwidth	32
hideuserprofileinfo	put_empty
boxghostmessage	0
userdeletetmessage	0
latestcategory_in	1
topicicons	1
debug	0
catsautosubscribed	0
showbannedreason	0
version_check	1
showthankyou	1
showpopthankyoustats	1
popthankscount	5
mod_see_deleted	0
bbcode_img_secure	text
listcat_show_moderators	1
lightbox	1
show_list_time	720
show_session_type	0
show_session_starttime	0
userlist_allowed	1
userlist_count_users	1
enable_threaded_layouts	0
category_subscriptions	post
topic_subscriptions	first
pubprofile	0
thankyou_max	10
email_recipient_count	0
email_recipient_privacy	bcc
captcha_post_limit	0
keywords	0
userkeywords	0
image_upload	registered
file_upload	registered
topic_layout	flat
time_to_create_page	1
show_imgfiles_manage_profile	1
hold_newusers_posts	0
hold_guest_posts	0
attachment_limit	8
pickup_category	0
article_display	intro
send_emails	1
fallback_english	1
cache	1
cache_time	60
iptracking	1
rss_feedburner_url
autolink	1
access_component	1
statslink_allowed	1

| Kunena integration settings:

Warning: Spoiler!

Kunena - AlphaUserPoints Disabled
Kunena - Community Builder Disabled
Kunena - Gravatar Disabled
Kunena - JomSocial Disabled
Kunena - Joomla Enabled: access=1 login=1
Kunena - Kunena Enabled: avatar=1 profile=1
Kunena - UddeIM Disabled

| Joomla! detailed language files installed:

Warning: Spoiler!

Joomla! languages installed:
en-GB	English (United Kingdom)

Third-party components: None

Third-party SEF components: None

Plugins: None

Modules: None

I had entered maximum upload size in megabytes in the Kunena Config. It requires to be entered in KB only.