Here's a story that I read:
The built-in URL tags, such as MTEntryPermalink or MTArchiveLink create canonical URLs in the form of http://www.domain.com/blog/index.htm and http://www.domain.com/blog/archives/Photos.htm. Sometimes it is convenient to use relative URLs in the form of index.htm and archives/Photos.htm.
via Pocket http://www.nonplus.net/software/mt/MTRelativeURL.htm
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