TO RESOLVE THIS I HAD TO SET 'SHOW MENU TITLE' TO 'NO' UNDER 'COMMON SETTINGS' IN THE VIRTUEMART SEF EXTENSION ITSELF.
I have purchase the Virtuemart for JoomSEF extension today. I have the latest version of both.
My order id is: 10672
THE PROBLEM
I have categories like this: jewellery/rings/bronze rings but the url generated is bronze-rings/jewellery/rings/bronzerings
If I change the extension settings so that only the last category is shown I get the url bronze-rings/bronze-rings
You can check it out on the site.