Put this snippet in functions.php in your theme directory and then refresh permalinks by navigating to yourdomain.com/wp-admin/options-permalink.php and you should be able to get it working with a compromise.
function set_new_author_base() {
global $wp_rewrite;
$wp_rewrite->author_base = '';
$wp_rewrite->page_structure = "/page/%pagename%/";
}
add_action('init', 'set_new_author_base');
No guarantees that this will work but thats what I ended up doing. However, all your pages will be prepended with a /page/ slug. It seems that WP3.3+ cannot have more than one post-type that rewrites directly from the domain.
Anyone know of a better way?