Users unable to delete profile picture

I have installed Imagecache profiles following the documentation and the resizing is working fine. BUT.. when the user ticks "Delete picture" and Saves the user profile, after reloading the page, the image is being generated again. Profile pictures will simply not delete :) The preset image has a new timestamp, therefore I assume that it's being generated again after ticking 'Delete'.

I have chmoded all directories to 777, I thought it was a permission issue, but unfortunately no results.

Has anyone ever experienced this before, or any input how this can be fixed?