/%postname% issue

Hi I’ve never come across this issue until now. When change the permalink settings to have %postname% or any other option other than the default option it shows me the a post like page that has all the images i have in all the subpages. The parent pages are correctly using the custom template I created specifcally for pages. When I revert to using the default permalink structure it shows the pages using the right template and no weird pictures showing up. Can anyone help with this.

http://lot108.com/ is my site

here is an example (this one displays correctly)
http://lot108.com/portfolio

This one doesnt pull up the right page but url is right (only happens when we dont use default permalink settings.)
http://lot108.com/portfolio/web-design/

Thank you much in advance