We've inside a htaccess file:

ErrorDocument 404 /404.shtml

Which activly works to show the 404.shtml file. The issue is when someone types thedomain.com/folder1/folder2, it breaks design because the page is applying relative pathways instead of absolute. I understand I possibly could use absolute pathways to repair this problem, however i am wondering if there's a means where it may really change the road to the 404.shtml, therefore the relative pathways usually stays.

Thanks ahead of time.

After plenty of research, it is advisable to stick with absolute pathways. This is often acheived through rewrites and coding the header to come back 404, but it is not worthwhile if this can easily be achieved with absolute pathways.