Smush-it was working fine until I moved the media files from the default wp-content directory to a subfolder which is in the same level as that of root directory where wordpress is installed.
I did so to ensure that the static content is served from a cookieless subdomain. Now everytime i try to smush an image, i get the following error:
../img/* must be within the content directory (../blog/wp-content)
From the code of the plugin - http://plugins.svn.wordpress.org/wp-smushit/trunk/wp-smushit.php, it is evident that there is a condition check. Can we get rid of this? Is there an alternate solution to make it work for subdomains?