Did you happen to modify any of the PhotoPlog files? What I see happening is that HREF attributes are being made into absolute links, but attributes like SRC remain relative links. If you didn't modify any PhotoPlog files, is there something special you're doing to output your skin? Also, I see you're using BACKGROUND attributes, but PhotoPlog doesn't recognize those as they are depreciated. For that you can use STYLE instead of BACKGROUND or in settings.php find:
Code:
Content visible to registered users only.
And replace with:
Code:
Content visible to registered users only.