I've tired in both Firefox and Internet Explorer 7, both with the same result.

What do you mean by "delete the old file?" Delete the image from inside the photo directory on the server? I've been trying to upload a new picture over the one already there now. In my experience with profile pics, or pics that are uploaded, uploading a new one replaces the one one.

I checked the permissions on the photo directory and it is now set to 777, as well as the index.html file inside it.

I still cannot change the profile picture. Shouldn't I be able to do this?