I've replaced all of the client files and set RemoveServerNamesFromUrl and UseRelativeLinks to true. The editor is still changing my template images to include the server name. Is there anything else I can try? With this error, I basically can't use templates, which is a huge problem.
I can see this same behavior on your own demo site. When I go to
http://cutesoft.net/example/general.aspx and insert the template 'template2.htm', the image of the cake is changed to an absolute reference, even though the template code has it as relative.