Drupal createds incorrect URL's - inserts /node in the URL in a selection of views

Error:
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With a Drupal install on www.example.com/drupal
using <a href="somelink">somelink</a> in a page or a user created block,
where for example "somelink" = "node/2", Drupal renders an incorrect URL www.example.com/drupal/node/somelink,
where it should have been www.example.com/drupal/somelink; on normal pages, as in the example drupal renders www.example.com/drupal/node/node/2. Note the node/node/2. Clearly a node to many.
A "page not found" error results
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When does this happen:
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I have spent quite some time figuring this out. Here are my results
- Clean URL's enabled (not tested without)
- Path Module NOT ENABLED:
In this case, the error occurs on any node or page except the front page;
When images are asked for from the site, e.g. foo.jpg, using the <img src="somelink/foo.jpg"> tag, the images are not rendered by the system. In this case, the log entries for Top 'page not found' errors state that "node/somelink/foo.jpg is not found (by Drupal / the server).
- Path Module ENABLED
In this case, whenever pages have given a human-readable URL via de URL Path settings, only on these pages the error does not occur!
Even when Path module is switched off later, the error stays away. The error persists, however, on normal pages that are only known as node/123 etc.
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Workaround for single user installs (requires PHP allowed on relevant posts)
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Building upon http://drupal.org/node/102667, I found this line of PHP works for a reference with image source
<?php echo '<a href="'.base_path().'somelink"><img src="'.base_path().'system/files/foo.jpg" alt="foo" />'; ?>
This poses a security risk when you have more than one user on a true community site!
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System
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Drupal 5-10 out of the box
Server 1: Debian (Etch) Apache/2.2.3 (Debian) PHP/5.2.6-0.dotdeb.1 with Suhosin-Patch MySQL 5.0.32
Server 2: Linux, Apache PHP/5.2.0-8+etch10 MySQL 5.0.32
Theme Garland, Bluebreeze, Ad-the-morning-after - doesn't matter
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Reproduce this bug
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* Install Drupal 5-10 from out of the box
* Create a first page node/1, put in reference to node/1; upload image foo.jpg and put in reference to image
* Create a second page node/2, put in reference to node/2
* Make sure both pages are promoted to front page
* Test the links and observer the rendering of the url and the image fail whenever not on front page
* Activate Path module, and give node/2 the URL "test"
* Include a reference to test on node/2 or node/1. Include a link that must render image foo.jpg
* Observe that now the correct URL's are created on node/2, test, and the image is rendered, but still not on node/1, if not on front page
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Why does this deserve attention?
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Drupal has a lively community; having started from 4.4.2, Drupal has seen many upgrades, and notably the move to 4.7 and 5 was major.
Being pragmatic, with Drupal 6 released and 7 on the way (?), I believe Drupa 5 is considered stable, suitable for "production".
Thus I believe this annoying bug should be fixed in Drupal core / the package that comes out of the box.
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