IE7 or IE8 compatibility mode causes incorrect links

This is a very specific issue which I've narrowed down to IE7 or IE8 running in compatibility mode. I marked it as critical because we have some users that are stuck with IE7 and cannot use another browser due to policies here, not sure if this is appropriate. Now to the issue.

When inserting links using Nodepicker 1.0-alpha4, links are input into the body (TinyMCE) field with additional path information in the URL, causing the links to be incorrect. I don't use the term broken because the links still work, they just go to the wrong place. Here's an example of what this looks like:

[nodepicker==http://example.com/node/12025/node/12013==Link%20Title==Link%20Text]

Notice the extra "node/12025/" in the URL. This is the path of the page I'm currently editing. node/12013 is the path of the page I'm trying to link to. This causes the Nodepicker input filter to not rewrite the link with the nice path alias so the links ends up coming out with this URL: http://example.com/node/12025/node/12013. When clicked the user ends up on node/12025, which is incorrect.

Not only does this happen when inserting new links, but also when simply loading the edit screen of an existing node. If you then save the existing node, even without making any changes, the links are modified to this incorrect formatting. This makes me think it's related to javascript, either Nodepickers or TinyMCEs.

Our workaround, for now, is to back out Nodepicker to the last version, 1.0-alpha3. Below is all our relevant version information. Let me know if you need any additional information.

Thanks,
-Tim

Drupal 6.16
TinyMCE 3.3.5.1 (I might try updating this tomorrow to 3.3.7 to see if it fixes things)
Nodepicker 1.0-alpha4
jQuery Update 6.x-1.1
jQuery UI 6.x-1.3