--- imagecache.module
+++ imagecache.module
@@ -311,14 +311,23 @@
  */
 function imagecache_create_url($presetname, $filepath, $bypass_browser_cache = FALSE) {
   $path = _imagecache_strip_file_directory($filepath);
-  if (module_exists('transliteration')) {
-    $path = transliteration_get($path);
-  }
-
   $args = array('absolute' => TRUE, 'query' => empty($bypass_browser_cache) ? NULL : time());
   switch (variable_get('file_downloads', FILE_DOWNLOADS_PUBLIC)) {
     case FILE_DOWNLOADS_PUBLIC:
-      return url($GLOBALS['base_url'] . '/' . file_directory_path() .'/imagecache/'. $presetname .'/'. $path, $args);
+
+      // Build the path including the preset name, and save a copy
+      $oldpath = $path = file_directory_path() .'/imagecache/'. $presetname .'/'. $path;
+      drupal_alter('file_url', $path);
+
+      // If hook_file_url_alter did not change the output, then we need to add
+      // the base url. If it did, we can presume the path needs no modification.
+      if ($path == $old_path){
+          $path = $GLOBALS['base_url'] . '/' . $path;
+      }
+
+      // Even though our path here may have been altered, and point to a CDN or
+      // something, we still want to use url() so that bypass_browser_cache works
+      return url($path, $args);
     case FILE_DOWNLOADS_PRIVATE:
       return url('system/files/imagecache/'. $presetname .'/'. $path, $args);
   }