[Plugin: Google XML Sitemaps] Sitemap URLs generated with error

In Google Sitemaps I now have 4.000 URLS that are generated with errors
Not found ‎(3,906)‎.
The main issue is that it inserts % % in url structure.
It gets:
http://www.dandragomir.biz/blog%20index.php/%20las-vegas-soa-and-me.html

instead of domain/blog/index.php/las-vegas-soa-and-me.html

I rechecked permalinks settings and Google Sitemap Generator settings, they seem ok.