Edit the file:
/includes/classes/class.captcha.php file
Inside that file you will see a function called AL_CAPTCHA(). Simple replace this code:
$this->type = 'dynamic';
}else{
$this->type = 'static';
}
with:
$this->type = 'static';
That should fix the problem. If it doesn't please post a support ticket with your details and we'll do what we can to fix the problem.

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