Hmmm... are you sure the settings are perfectly identical? I'm not sure what the difference could be, but I see that the image sizes for the category images aren't the same on both sites?
I'm confuzzled, as I have similar issues. On this page of this site:
http://www.zencart137.jadetrue.com/testing-2-c-2.html
The subcategory image does not have the hover function. Which is actually the way I'd like it to work, because there's no need in my opinion to enlarge them.
However, on this other site I'm working on:
http://www.jmb.jadetrue.com/potty-time-c-1.html
They do!
AHA!
Try changing your subcategory image height on Pitti Vintage from 100 to 101, and see what happens?
When I changed my height to an odd number, it started working just fine. It looks some sort of bug, but one that works to my advantage.
It looks like on beaded lily, you have a width defined rather than a height, and perhaps that creates the bug as well? Or perhaps the bug is IH2 controlling category images in the first place.
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