Don't know where 404 error is coming from
If you go into inspector, you can see:

&lt;object data="http://www.lostinthesmoke.com/sites/all/modules/lightbox2/images/blank.gif" width="0" style="position: absolute; left: -9999px; "&gt;&lt;/object&gt;


is being added at the very bottom of your page.  Why?  I dunno, but it's there :)  The fact that it doesn't show up in "view source" suggests it's being added via javascript on page load.

Why isn't it finding blank.gif?  Again, I dunno.  It's here in my lightbox2 directory, so, perhaps your installation has been corrupted and thinks it is still installed.