P2 Theme Media Upload Broken – Double Directories

WordPress – 3.1.2
PW – 1.2.3

I just installed a clean version of WordPress 3.1.2 and the theme P2 1.2.3 with no plugins installed and I’m running into the same issues from these 2 forum posts:

http://wordpress.org/support/topic/media-upload-problems-in-p2
http://wordpress.org/support/topic/p2-problems-with-media?replies=4

Everything is working except if I click the button to upload an image, video etc… the URL is wrong. It’s adding the install directory 2x:

http://domain.com/wordpress/wordpress/wp-admin/media-upload.php?p2-upload=true&post_id=0&type=image&TB_iframe=1

Notice the 2 wordpress subfolders are listed 2x.

I just installed wordpress again with P2 on a separate hosting service and I’m hitting the same issues again.

Would love to get some help on this!

http://wordpress.org/extend/themes/p2/