I had the same issue. I think it was a combination of the server install with Fantastico, upgrading in WP admin panel and playing with different plug-ins. Even though I upgraded through wordpress admin my server was still not recognizing it and sending messages to upgrade…even though it was. So I tried upgrading through Fantastico and my problems worsened.
I tried to fix the database, but the problem was deeper than I could fix. The site was built to blow up anyway, so I just reinstalled.
If you guys figure out the issue be nice to know.