> Can you provide a reproductible example ?> 
> 
> Can you also enable "debug" log, and see if the css
> file is being parsed ("scanning file .." lines in
> hts-log.tct)
> 

common_styles.css contains this:

li.selected{
	background-image: url(./images/leftnav_arrow_blue03.gif);
	background-repeat: no-repeat;
	background-position: top left;	
}

hts-log.txt:
Debug: 	link detected in javascript: ./images/leftnav_arrow_blue03.gi

Debug: 	link detected in html (tag): ./images/leftnav_arrow_blue03.gif

Debug: 	position link check images/leftnav_arrow_blue03.gif

09:45:30	Debug: 	build relative link images/leftnav_arrow_blue03.gif with
abbotthome.web.abbott.com/wps/themes/html/common/common_styles.css

Debug: 	built relative link images/leftnav_arrow_blue03.gif with
abbotthome.web.abbott.com/wps/themes/html/common/common_styles.css ->
abbotthome.web.abbott.com/wps/themes/html/common/images/leftnav_arrow_blue03.gif

Debug: 	wizard link test at
abbotthome.web.abbott.com/wps/themes/html/common/images/leftnav_arrow_blue03.gif..

Debug: 	wizard test begins:
abbotthome.web.abbott.com/wps/themes/html/common/images/leftnav_arrow_blue03.gif

Debug: 	file from too far level ignored at abbotthome.web.abbott.com :
/wps/themes/html/common/images/leftnav_arrow_blue03.gif

Debug: 	result for wizard link test: 1

Debug: 	External:
abbotthome.web.abbott.com/wps/themes/html/common/images/leftnav_arrow_blue03.gif

Info: 	engine: postprocess-html:
abbotthome.web.abbott.com/wps/themes/html/common/common_styles.css


Why does it say "link detected in javascript"?
What does "file from too far level ignored" mean?
Does this help?