Try this

function basename(path) {
    return path.replace(/\\/g,'/').replace( /.*\//, '' );
}

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which I ruthlessly stole from http://planetozh.com/blog/2008/04/javascript-basename-and-dirname/

where would I place that in my above code?

You need the entire page?

<?php
  /**
   * Account Profile
   *
   * @package Advanced Login System
   * @author wojoscripts.com
   * @copyright 2010
   * @version $Id: account.php, v2.00 2011-07-10 10:12:05 gewa Exp $
   */
	  
  $row = $user->getUserData();
?>
<?php include("headerfront.php");?>


    <p class="info">Here you can make changes to your profile...</p>
    <div class="box1" style="width:610px;">
      <form action="" method="post" id="admin_form" name="admin_form" enctype="multipart/form-data">
        <table width="100%" border="0" cellpadding="3" cellspacing="0" class="display">
          <thead>
            <tr>
              <th colspan="2" class="left">Edit Your Account</th>
            </tr>
          </thead>
          <tr>
            <th width="180"><strong>Username:</strong></th>
            <td><input name="username" type="text" disabled="disabled" class="inputbox" value="<?php echo $row['username'];?>" size="45" /></td>
          </tr>
          <tr>
            <th><strong>Password:</strong></th>
            <td><input name="password" type="password"  class="inputbox" size="45" />
              &nbsp;&nbsp; <?php echo tooltip('Leave it empty unless changing the password');?></td>
          </tr>
          <tr>
            <th><strong>Email Address: <?php echo required();?></strong></th>
            <td><input name="email" type="text" class="inputbox" value="<?php echo $row['email'];?>" size="45" maxlength="40" /></td>
          </tr>
          <tr>
            <th><strong>First Name:</strong> <?php echo required();?></th>
            <td><input name="fname" type="text" class="inputbox" value="<?php echo $row['fname'];?>" size="45" /></td>
          </tr>
          <tr>
            <th><strong>Last Name:</strong> <?php echo required();?></th>
            <td><input name="lname" type="text" class="inputbox" value="<?php echo $row['lname'];?>" size="45" /></td>
          </tr>
          <tr>
            <th><strong>Avatar:</strong></th>
            <td><input name="avatar" id="imgfile" type="file" size="40" class="inputbox" /></br> <?php echo ($row['avatar']) ? '<img src="'.UPLOADURL . $row['avatar'].'" alt=""/>' : '<img src="'.UPLOADURL.'blank.png" alt=""/>';?></td>
          </tr>
          <tr>
            <th><strong>Date Registered:</strong></th>
            <td><span class="input-out"><?php echo $row['cdate'];?></span></td>
          </tr>
          <tr>
            <th><strong>Last Login:</strong></th>
            <td><span class="input-out"><?php echo $row['ldate'];?></span></td>
          </tr>
          <tr>
            <td colspan="2"><input name="doupdate" type="submit" value="Update Profile"  class="button"/></td>
          </tr>
        </table>
      </form>
    </div>
	</div>
<script type="text/javascript">
// <![CDATA[
$(document).ready(function () {
    $('input[type=file]').each(function () {
        var label = 'Browse';
        var button = '<input type="button" class="button-alt" value="' + label + '" />';
        $(this).wrap('<div class="fileinput"></div>');
        $(this).addClass('file').css('opacity', 0); //set to invisible
        $(this).parent().append($('<div class="filemask" />').append($('<input type="text" class="inputbox-sml" size="40" style="margin-right:10px"/>').attr('id', $(this).attr('id') + '__fake')).append(button));

        $(this).bind('change', function () {
            $('#' + $(this).attr('id') + '__fake').val($(this).val());;
        });
        $(this).bind('mouseout', function () {
            $('#' + $(this).attr('id') + '__fake').val($(this).val());;
        });
    });
});
// ]]>
</script>
<?php echo $core->doForm("processUser","ajax/controller.php");?>	
</html>

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this is a bit more confusing, as you are uploading the file with a php interface that I'm not familiar with. You may be able to change the name of the avatar from within PHP. I don't think you want to change it before you upload, as your computer won't be able to find it.

When I click to browse for the image and click on one to use it then places the fakepath in the form:
http://s10.postimg.org/6rvak1195/image.png

Then you hit update profile and it uploads and saves the new avatar.

I want to just hide the C:\fakepath\.

right. I don't think you can do what you want using the normal file upload. In other words, that path name is how the browser knows what file it will upload. If you change it, the browser won't be able to upload, at least as I understand file upload. Once you have the file stored in your database, you can modify the filename as much as you want because (ideally) the database has a stored copy.

Well ended up getting it to work, I had to remove what I guessed was the issue, turns out it was.

Here is the modified code.

// <![CDATA[
$(document).ready(function () {
    $('input[type=file]').each(function () {
        var label = 'Browse';
        var button = '<input type="button" class="button-alt" value="' + label + '" />';
        $(this).wrap('<div class="fileinput"></div>');
        $(this).addClass('file').css('opacity', 0); //set to invisible
        $(this).parent().append($('<div class="filemask" />').append($('<input type="text" class="inputbox-sml" size="40" style="margin-right:10px"/>').append(button));

        $(this).bind('change', function () {
            $('#' + $(this).attr('id') + '__fake').val($(this).val());;
        });
        $(this).bind('mouseout', function () {
            $('#' + $(this).attr('id') + '__fake').val($(this).val());;
        });
    });
});
// ]]>

Select allOpen in new window

sorry, I don't see it. What did you change? You modified the ID of the button, but how does that address the path?

Do the change and mouseout bindings still work?

My solutions worked, but points to you for your time.