subdomain links redirect to main site front page

OK it gets more confusing.
http://www.simonegansmith.com (main site) and WP site works OK
http://www.badcreditloans.simonegansmith.com setup as part of multisite does not work
http://www.growingyourownveg.com/blog setup with a separate mysql database and WP install does not work

All on on the same host.

Everything started to go pear shaped when
1. another subdomain (not a wp site) started to get spammed and my hostig company said to created .htaccess rules to block them.
2 upgraded to wp 3.3.1

to answer dgilmour I assume the .htaccess file is being read as the spamers are now block.

to answer Ipstenu I assume so as they were working before.

here is the.htaccess file

[Code moderated as per the Forum Rules. Please use the pastebin]

I hope I have entered that correctly