My sites are hosted on GoDaddy and the site that works is the main root directory site, and the site that does not work is in a subdirectory.

Everything else seems to work fine. I have set up my admin user and can seem to do everything, but I am prevented from registering a new user, since the Security Image letters can not be verified, and I can not generate a new image.

Not really quite sure what to do to resolve this so any guidance would be greatly appreciated.

I believe this is just the default setup for the site since I don't recall selecting any unusual options during installation.

Which Captcha did you use ReCaptcha or the Yaf Captcha (It can be set under Host -> Host Settings -> Features -> Captcha Settings -> Enable CAPTCHA/reCAPTCHA for Register). If you use ReCaptcha the "Generate New Image" Button is not visible.

Is the Image not shown or is it shown but can not be validated?

Apparently not necessary now but just to answer your questions:

When I checked my settings, it is set up for YafCaptcha, and the "Generate New Image" button is definitely visible.

And the image is shown, it just could not be validated or generate a new one.

Thanks so much! I had given up hope on this but your response motivated me to check one more time and I was very glad to discover it worked.

Thank you.