Just thought I would mention that I was having the same problem and I found out that I had accidentally left a forward on and even though the ip address was pointed to the wordpress blog the forward messed up the permalinks.
I am having the same problem… this is on a totally clean install of the new WP version.
When I add a post to my articles page it is adding a heading from random (it seems) from my cat list. Since this was a clean install I am using the tags more than the cats but it still shows up wrong?
I would love to use this plugin, it looks great, but I can’t with headings that look this bad 🙂