Hey BeerLuver,
That's a tough one. Step 13 is what's causing that. I myself have decided not to use this with the Image Resizer mod because of that very reason (and because I don't like editing core files), meaning I just skipped step 13 and 14
See an example of the end result here. I've been
trying to get Jase2 to get his mod working with Lightbox (the version that comes with vB) and that way it would also work with this mod (or at least I'd then be able to figure out how to get it working with this mod), but he hasn't done it yet.
So, the way this mod works at the moment is if you want to have IMG images open as a group using lytebox, then your signatures will too. Sorry, I wish I was smarter.
If anyone knows a little about JavaScript I'm sure it would be super easy to tweak Jase2's code to work with my mod, I can help jsut let me know what you need.