Ok quick update:
I found another fix - replace the 'Replacement character' dash (-) with a slash (/).

So the URL goes from:
www.xxxx.com/gas-station/
to
www.xxxx.com/gas/station/

Seems to be ok will it effect the SEO? If so good, bad or no change?
Thanks.

Hi....
I searched and have yet to find a solution for the following problem:

After installing Joomsef 2.1.1 with MTree extension 1.2.1 it won't navigate beyond the initial directory - each category loops back to the directory page. I found a couple of 'work arounds' but their limited and only create other issues.

Appreciate a fix or instructions.
Thanks.