Click on your username instead of the settings.
On the right side you'll see something "View Images for " Click on that and you'll get the option to upload an image.
Did all this but it still shows the dragon, I'm missing a step tp put it under my name on the left over there. The Dragon is my ps3 user icon.
New forum still needs a lot of minor touch-up work, but the best thing about it is... this is a LITHIUM board, which means it has potential for greatness. Let's just hope they make it work and look correct soon.