SEF URLS = Broken image links

[farmeunit]

We are having the same problem mentioned in the following thread.
http://forum.joomla.org/viewtopic.php?t=431132

example: should be--> http://wpsd.net/images/resized/images/s ... 10_231.jpg

now the system has changed to --> http://wpsd.net/news-announcements/news/images/resized/images/stories/2014-2015/elementary/news-announcements/dsc00981_410_231.jpg

http://wpsd.net is the URL (We do have a large country IP block to reduce SPAM, but I can remove those temporarily if requested)

If you scroll down to Latest News and Annoucements, any article that has a picture other than the "Lastest News" logo will have the issue. Other pages have the issue, just those are easy to get to.

If I disable SEF in Global Configuration, the pictures are fine. I've tried default .htaccess file with the same result. Another person manages the day-to-day operation, so not sure exactly what she has installed, but she typically only uses the standard SEF plugin, and that all I notice when looking.

Joomla 3.3.6
PHP 5.4.23
Apache
Linux

Not sure what next step should be.

[farmeunit]

During more testing, if we leave SEF on and disable the System-Cache plugin, every is fine as well. So...

If this should be in a more general category, I'm fine with moving. Not sure if it's SEF issue or just caching.