I confirm the value that I gave to you.
The value comes from the first picture that you gave in your description
www.jms2win.com/images/fbfiles/images/template.png
This is the value present in the "template folder"
If I read correctly, you entered following full path that is incorrect
/home/audubon/public_html/domains/audubon/lifestyles/images

You have to enter a relative path.
So, to help you, I tried to dicover how you setup your environment and tried to give you the correct value. I have suppose this is lifestyles/images

Now you write that the value is "audubonlifestyles/images" so this is probably this one.

Concerning the SEF, you need to enable the joomla SEF and the rewrite mode in the "global configuration". In this case, Joomla will convert the
"http://{slavesite}/component/content/category?id=xxx"
into a SEF value.

When the SEF is enabled in Joomla, it uses the "Alias" present in the "Menu item" to get the first word of your URL.
In your sample
"http://{slavesite}/resources/sustainability-newsletter/116-summer-2012"

The word "resources" comes from a menu item that has the unique alias = resources.

After that, depending on the meny type that is attached to the menu item (here an article as you mentioned
"http://{slavesite}/component/content/category?id=xxx"
This URL corresponds to a default joomla SEF processing where "component/content" correspond to "option=com_content" and /category?id=xxx correspond probably to the category id = 116.

The word "sustainability-newsletter" probably comes from the category alias
and the word "116-summer-2012" with leading number give a specific record to display (here the id 116).

The rewriteBase is used to convert the "http://{slavesite}" to the correct physical directory on the disk.
The other parts of the URL
- /component/content/category?id=xxx"
or
- resources/sustainability-newsletter/116-summer-2012"


is normally parsed by the last section of the .htaccess
that try to verify if that correspond to a physical file or folder.
If not, this call the "index.php" that is in charge to convert the URL into an internal equivalent (option=XXXX&.....)

The SEF issue is not related to JMS.
The way that URL are build is provided by joomla itself.
Verify also that the menu item are correctly generated.
As joomla itself may have issue when building their menu item, a "rebuild" button is present to allow refreshing the menu item.

See an issue that we reported to joomla concerning erractive SEF sometimes generated by joomla.
github.com/joomla/joomla-platform/issues...issuecomment-6588382