Solution was actually simple. This post brought me up the idea (which is a bit ironic actually since it's a post about jquery address competitor hehehe). I had at initialization the following set up
$.address.state($.address.baseURL()).init(function(event)
this caused the entry url to be the root domain. I now changed this to
$.address.state('/').init(function(event)
which causes the root (hostname) to be the entry domain. This solved the problem.