Joomla - Misconfiguration

General information for the website: URL problems
Kind of development: Customization of existing website
Description of every page/module: I am getting an URL mutation and duplication:

http://www.poundsterlinglive.com/%20http:/www.poundsterlinglive.com/index.php/breaking-news-articles/175-australian-new-zealand-and-south-african-rand-outlook-3543534

This is the original: http://www.poundsterlinglive.com/breaking-news-articles/175-australian-new-zealand-and-south-african-rand-outlook-3543534
The problem looks like a server configuration issue (mod-rewrite or .htacess) or an incorrect paramter set in the configuration.php file for the live-site parameter.
Description of requirements/features: Can anyone fix the issue?

Extra notes: Linux server