Installing and upgrading help

I'm a total newbie. I managed to get Moodle installed and working on my Windows XP server. Problem is, this "picture" function don't work. I can't change that smiley face thingy to my own picture. Stranger still, the part of the user edit screen that is supposed to do this function (according to the Moodle help file, etc.) does not even appear at all, i.e., the 'Browse' box for locating the picture file, etc.) just ain't there. I checked both the config.php and the index.html file and there appears to be code in there which supports this function and makes the little browse box, but my browser just doesn't see it.

I even upgraded the entire Moodle prog from version 1.3.3 to 1.3.4 thinking this would replace any badness that I had in there from my first install, and the picture problem is STILL there. I have read the various Moodle history files, and searced high and low for anyone having this kind of problem and nada. From the Moodle help file, etc., there is evidence this "picture" function has been around for quite a time. Anyone have any ideas why mine don't work?? 

Thanks in advance for your insight and assistance.
Steve Hansen