The issue was due to the IMPEX import from phpBB3. All links within the IMG tags along with smilies were imported with HTML entities. I contacted the
MagnetiCat PSFANTASY team for support at 1:30 AM and by 2:30 AM the problem was resolved. They were able to write a script to decode the html entities for all posts.
I came across a few other posts here and on vb.com of people experiencing the same problem.
CarlitoBrigante (user on this site) will be able to resolve this issue if someone else needs support. I can't recommend the
MagnetiCat PSFANTASY team enough, fast, great communication, reliable and very affordable.