Talk:Why does your site get messed up when you turn on SEF (Search Engine Friendly URLs)?
From Joomla! Documentation
I had site problems using:
var $live_site = 'http://example.com/joomla';
...which went away when I set it this way:
var $live_site = '/joomla';
However, this did not solve my SEF URL issues.
Just FYI,
Scott