If you do not quote your URI, you must backslash-escape any characters that would cause the value to not be a URI token. Such characters include:
parentheses, commas, white space characters, single quotes (') and double quotes (")
See http://www.w3.org/TR/CSS2/syndata.html#value-def-uri.
When a parse error occurs on any rule, that entire rule is discarded. A compliant browser should never try to recover from such a parse error. In this case, Internet Explorer is not following the CSS recommendation, and its behaviour is incorrect. (IE gets CSS wrong. What else is new.)
Your CSS rule can be fixed by quoting as mentioned above, or by escaping as follows:
div.something {
background-image: url(http://i2.photobucket.com/albums/y24/5609903697/Beyond\ Birthday/BB39.jpg);
}