Shop Made Simple Paths Problem

[Warlock]

There seems to be a paths issue with the image links in there respective folders (products and categories).

as default it creates this type of link:
or  

this results in the browser not finding the images

In the preferences where you can change the paths to categories and products:
when this is done as so:

/products/ to products/
and
/categories/ to categories/

it creates these folders when uploading new images:
uploads/imagescategories/image.jpg
and
uploads/imagesproducts/image.jpg

but the original images will then finally have the right link.

Would appreciate any help, (ie, pointing at the right file to be fixed in the backend and i'll have a look myself  :) )

Ps. I suspecting SMS and Products to have a conflict, i tried to install both modules and the CMSMS went down completely, individually the modules are fine, just when you try to install both does it go wrong.