SIG PRO works great with Joomla 1.5, but there are some things that you need to know, having messed with this for a while.
MOST IMPORTANT: make sure that ALL of your image names are lowercase letter or numbers. Do not use any other type of symbols or spaces. Cleaning up all of my images in my "stories" directory that SIG PRO were to call to directory wise, made it work fine.
The Temp directory that SIG PRO uses, as defined in the plugin description for it (/images/stories/temp/ ) should be chmod 777. However, I had trouble making that work for some reason, maybe because my /stories/ directory is NOT chmod 777. So I created a new temp directory for SIG PRO, in the images directory, such as /images/temporarydir/ and I chmod that to 777. Make sure you tell the SIG PRO plugin where the temp directory is, and make sure you have the beginning and trailing slash. You can put a "temporarydirectory" in the main part of the site and chmod that to 777, but it also works in the /images/ directory. The 777 chmod is crucial.
That's it. Works great. Just those two things: all lowercase and all jpg; and a temp directory that is either in the main directory of the site, or in the /images/ directory, chmodded to 777.