I am having the same issue. I am running 1.0.2 sharing cookies with WP 2.8.5. If a user is not logged in, and selects “add new”, they are routed to my WP 404 screen. Instead of using the hack above, I’ve done the following hack so that the redirect is maintained. Note that it just strips the “http://” out of the redirect. Hopefully a real fix can be put in place for this.
I’ve done some limited testing and this seems to work.
In functions.bb-template.php I created the following function:
Resolved. I had created and was working on a development instance (copied db and code) instead of doing an install from scratch. I had missed changing one of the database url’s that was still pointed to Prod instance.