Good point. With mobile, you are more likely to share an IP range with other people. Those other people could have broken TOS, and gotten everyone in your area in trouble.
Are you using one of the mafia clients? We removed product lists from photos for security reasons. People kept getting banned for AP products in their pictures, despite having AP.
That's weird. It works just fine for me, running 543.0 IMVU Lite. It does not even ask me to update. I guess, try re-downloading, make sure you have the right version.