3.0.6 Update Kills WordPress?

When I upgraded to version 3.0.6, I was no longer able to access my blog or the admin pages. I get the errors posted below. Going back to version 3.0.5 makes everything better again. Could it be a conflict with iThemes Security? Thanks!

Warning: is_readable(): open_basedir restriction in effect. File(/nfs/c01/h16/mnt/8840/domains/x.com/html/wp-stuff/plugins/compact-archives/languages/wpb-caw-domain-en_US.mo) is not within the allowed path(s): (/nfs:/tmp:/usr/local:/etc/apache2/gs-bin) in /nfs/c01/h09/mnt/8840/domains/x.com/html/wp-includes/l10n.php on line 583

Warning: Cannot modify header information – headers already sent by (output started at /nfs/c01/h09/mnt/8840/domains/x.com/html/wp-includes/l10n.php:583) in /nfs/c01/h09/mnt/8840/domains/x.com/html/wp-includes/pluggable.php on line 1210