WP 3.2.1 - interesting htaccess problem.

So I've seem to run into a pretty wild problem with a fresh 3.2.1 install yesterday on GoDaddy Grid.

Seems that I can't get to /2011/11/hello-world/, but I can get to the category areas /modules/ and /themes/.

It's wild because for the category permalinks to work htaccess and mod-rewrite needs to work (and it does I've tested it).

So I'm just wondering if anyone has run into this problem before?