It seems that there is a bad wordpress worm going around that is attacking blogs and changing settings. I seem to have been one of the victims. I was able to change my permalinks back to normal and I have disabled user registrations for now while I try to figure out how bad the damage is and what else needs to be fixed. I also need to upgrade my blog software.
Be sure if you use wordpress that you are using the most recent version as this will prevent his headache. If you have been attacked too, start with this article: Old WordPress Versions under attack and it should help you.