Hi Hwamee,
it's pretty simple, the original SSM dealt with PET images and assumed multiplicative variability, thus a log transform achieves additive variability in the transformed images and the normalization chosen removes global scaling factors. For fMRI this does not work for the simple fact that often subject images are parametric maps coming out of a GLM time series model and can have negative values, so the log transofrm will give imaginary numbers which is no good.
If you are dealing with fMRI images that are parametric maps and have negative numbers in them, leave out the log transform. Any other modality with positive numbers should work. Whether it's the right thing to do (i.e., the variability can be assumed to be multiplicative) for non-PET data is not clear though, maybe try it with and without log transform and see what you get.
Chris