Changing default path when Drupal is in subdirectory.

Drupal 6
Tiny Tiny MCE 6.x-1.12
IMCE 6.x-1.2
URL aliases ON
I have IMCE set:
X Absolute URLs
Check if you want IMCE to return absolute file URLs.

All playing well together, I can browse to image, see image in MCE editor.

However, when saved,no image! See example (testing mode):

http://ulsandbox.org/liblog2/

Note no images.

Now, Drupal is installed in a subdirectory on this server.

However, image on home page path is:

http://ulsandbox.org/sites/default/files/butterflies_2_0.png
It should be:
http://ulsandbox.org/liblog2/sites/default/files/butterflies_2_0.png

I noted directions in README, quoted below, but I dont understand precisely where i am supposed to do it. It sounds like I should do it for each url...?

Is there a way for me to modify the default path? I will have multiple users, and they can't edit the url manually each time, I'd like to put it in the code...

Thanks sorry for being dense!

Quote

"- All URL strings in the examples start with "/" considering the base path is "/".
In case your drupal is running on a sub directory e.g, http://localhost/drupal, these URLs should start with "/drupal/".
There is a safer solution that does not require manual URL fixing: If the Drupal javascript object is avaliable in your page you can use Drupal.settings.basePath at the beginning of URLs (Drupal.settings.basePath+'?q=imce....')
- file and directory ids(names) used in imce.js are url encoded forms of original names. They are decoded using imce.decode and displayed in the lists."