I get it.
The thing is, the Browse button functionality isn't what I expected.
With the edited path you added, I can now browse the server for image files, I am guessing because $CKEditor_config["filebrowserBrowseUrl"] launches webassist/kfm/index.php?
What I expected the browse button to do was to allow me to browse to a php page for a hyperlink, so I can browse for a page on my server without having to key in the url.
If this is not the function of the browse button, is it possible to disable/hide it, as I am sure it will cause confusion for the site admin