having the same problem

images are broken is that IH is giving the wrong relative URL.

My site is at www.domain.com/new/, but IH is saying that the relative URLs for the images on the backend are at /new//new/index.php instead of /new/index.php

tried the merging of:
\includes\modules\YOUR-TEMPLATE-FOLDER\additional_images.php
to no avail


Also, if i am in the Image Handler 2 MANAGER and click NEW FILE under "Click to add a new image to this product" i simply get shot to the ADMIN part of the mod

i am assuming this is a 1.3.8 issue, as it works fine on the same templates ina a 1.3.7 setup

any help appreciated