Again I'm not sure what else I can say since this is really not an issue with IH2 and more of an issue with what was different about your live site versus your test store.. Not really an IH2 issue at all.. at this point it's pretty clear that this is not being caused by an IH2 error..
It's not that IH2 doesn't work because there's something wrong with IH2.. IH2 isn't working because there is something different between the your test and live store's configuration and this difference is affecting IH2's behavior.
Since both stores are on the same server the most likely causes are any files which include file path data (.htaccess or configure.php files)
You may need to consider hiring someone to help you get this all straightened out..
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