First, you might want to upgrade Joomla to 1.5.9... a security fix for a Joomla problem found by CB Developers.
CB 1.2 is SEF compliant, meaning it adheres to the requirements set for Joomla core SEF... the same requirements any 3PD SEF component must adhere to. I noticed in the SH404 forums that they were waiting for a 1.2 download to become available to look at. You may want to give them a heads-up... it's here.