avatar and photos malfunction

We have a 7.0.7 site.
It's been online more than a year. Last week we encountered a problem with avatar uploads not working, it shows the 'loading' icon.
We are able to browse for a photo to upload, but when we select it we get a 'page not found'. The resulting url is incorrect... http://www.mysite.com/modules/modules/?r=avatar/ If you'll notice, modules is duplicated.
 In the photos module, when trying to add a new album by clicking the text link in the middle of the page the url is incorrect there as well... /m/photos/albums/my/main//m/photos/albums/my/add... You can see that some of the directory is duplicated there as well.
  We have looked for days trying to figure this out, but with no luck.

Please help us?

Bill and Deb

 We are still working on this.
We have found 3 separate entries in the database for Avatars.. could this be the issue?

Still not working, any suggestions?

We see that the avatars are getting loaded into the tmp folder, but are apparently not being processed.
Any input?

.com/modules/modules/?r=avatar/

?r=avatar is used when permalinks are disabled

check to see in Advanced/Settings/Permalinks
Enable friendly permalinks in avatars:

Permalinks are enabled. We tried disabling them a week ago with no change so enabled them again.

It was working and then it stopped working.  So something had to change somewhere.  Are you hosting this yourself on your own server, either VPS or Dedicated?  Or, are you being hosting by someone else?  Sometimes a host will make changes to their configurations, and that can break things.  If you are being hosted on a shared host; then you are likely running on a vHOST and your hosting company may have reconfigured things that is affecting your installation.  If you are hosting yourself, then think about any changes you may have made to the server; especially looking at your webserver configuration. 

 RE:

 There were about 90   tickets closed between the version you are running and 7.0.9, including avatar/photos issues.   If you want a Dolphin site that runs decently, you need to be a little more diligent about applying upgrades.... 7.0.7 was released 524 days ago.

 Thank you for your input, it is a dedicated server and we contacted them first about this trouble. They made no changes.

Thank you Houston, we are looking into finding someone to upgrade and make sure all of our purchased modules remain working as well.

 We have updated to 7.0.9 and still have issues. Same trouble... Any more suggestions?

This has been fixed by Igorl.
I don't know what he did, but it works now.