[wp-testers] Custom Post Types and Permalinks broke? RC3

[Chuck Reynolds]

Updated site from 2.9.2 to 3RC3 fine, current permalink structure is
year/month/postname as usual.

Turn on the new theme which includes custom post types, and when trying to
load new posts in the custom post type I get 404's on the front-end.  If I
turn OFF permalinks the posts work fine with the standard
.com/?type=post-name/.  It's the permalinks that are messed up.  I deleted
.htaccess, rewrote it multiple times and reinstalled and started the process
over again slightly different order and same results.
Functions code is:

add_action('init', 'events_post_type');
function events_post_type() {
$args = array(
 'label' => _('Events'),
'singular_label' => _('Event'),
 'public' => true,
'show_ui' => true,
'capability_type' => 'post',
 'hierarchical' => true,
'rewrite' => array(
     'slug' => 'events',
 'with_front' => false,
),
'supports' => array('title', 'thumbnail', 'editor', 'custom-fields',
'excerpt', 'page-attributes')
 );
register_post_type('events', $args);
register_taxonomy_for_object_type('event_type', 'events');
 register_taxonomy_for_object_type('post_tag', 'events');
}

Updated this ticket: http://core.trac.wordpress.org/ticket/13712

Idk if this is still a bug in RC3 or something else is going on.  Thx