Index: imagecache.module
===================================================================
--- imagecache.module	(revision 3418)
+++ imagecache.module	(working copy)
@@ -444,8 +444,8 @@
   }
 
   // preserve path for watchdog.
-  $src = $path;
-
+  // PB:20111130 add the filepath to fix a realpath problem
+  $src = file_directory_path() . '/' . $path;
   // Check if the path to the file exists.
   if (!is_file($src) && !is_file($src = file_create_path($src))) {
     watchdog('imagecache', '404: Unable to find %image ', array('%image' => $src), WATCHDOG_ERROR);