Problem w image paths on insert

I have installed CKEditor (with CKFinder) onto my Drupal. Overall, it looks like I have everything configured correctly. However, when I browse CKFinder and select an image to insert into a page, it is inserting the entire server path instead of the web address --- so that the image doesn't show as a preview or on the page unless I manually change the SRC path in the image.

I haven't found a solution searching the internet, and hope someone here can point out something obvious I must be missing.

In Drupal, my module configuration (for 'full' profile) has the following settings, under FILE BROWSER SETTINGS:

Path to uploaded files:
%bsites/all/modules/ckeditor/ckfinder/userfiles/
/sites/all/modules/ckeditor/ckfinder/userfiles/

Absolute path to uploaded files:
%d%bsites/all/modules/ckeditor/ckfinder/userfiles/
/home/mysite/public_html/sites/all/modules/ckeditor/ckfinder/userfiles/

When I go to a content, choose an image, and try to insert it --- CKFinder/CKEditor puts the following as the SRC value in the IMG tag:
/home/mysite/public_html/sites/all/modules/ckeditor/ckfinder/userfiles/images/earth_800x600.jpg.jpg


So I then also tried setting values in the CONFIG.PHP file within CKEditor directory...

$baseURL = "/sites/all/modules/ckeditor/ckfinder/userfiles/";
$baseDir = "/home/mysite/public_html/sites/all/modules/ckeditor/ckfinder/userfiles/";

(note: I downloaded the most recent CKEditor/CKFinder versions from the official Drupal site as a module package)