Permalinks and too many redirects

WordPress 3.3 –
When I enable “postname” in permalinks and click on “view image” in media/library I get a “too many redirects” error message. If I click “edit” in media/library for same image, the edit page comes up fine. If I change the permalinks to “default,” both view image and edit image work fine.

background:
1. url path for image in “edit” in media/library is:
https://addOnDomainName.com/wp-content/uploads/feed.png
and I can access the image if I paste that location into the browser.
BUT the “view” in media/library URL is trying to go to :
addOnDomainName.com/?attachment_id=435
EVEN if I DELETE my .htaccess file, I get a redirect error with the above URL.

a search for id 435 with php myadmin finds 3 instances of “435”:
2 matches inside table wp_postmeta
1 match inside table wp_posts

2. We changed the domain of this site many times (with no problems !) and it is currently an add-on-domain at canadianwebhosting.com
3. using optipress theme, only active plug-in is askimet.
4. Before uprading to WordPress 3.3, we were using custom structure with %postname%

Any help appreciated …