The Chat doesn't seem to be working for most people - though one person at least did get it working - so I'm not entirely sure what is wrong with it.
As for your profile/session problems, it might be a problem with your browser/cookies - sometimes caused by spyware, sometimes caused simply by a glitch in your browser. Try doing a spyware sweep then clearing out your cookies - should make the problem go away.
As for the verification picture, that should only be for registration - and I turned that off... judging by the fact you were able to register, I'm guessing that it's still off - so which pic are you talking about? o.O