I did a semi downgrade, meaning this is not a clean way to downgrade, but for now it's working as I want. Not sure if this is technically correct as I'm not running a pure version (at least I don't think so). I started to follow Easy WordPress Downgrade
[Note: I had original WP 3.0.4 download]
But I didn't do everything in it. I backed up my database via MyPHP admin. Then I moved all my WP3.1 files into a folder so that if this didn't work I could put everything back easily.
Then I went back and copied over all my files from WP 3.0.4 which was the last version I was using. I copied everything but wp-admin and wp-includes since a fresh version comes from the original WP 3.0.4 install files during an upgrade.
Once that was done, I made sure to have all my customized files in place. I now am running a semi 3.0.4 version.
When I went back into WP it did ask me to update the database....not exactly sure what it updated or did...I think it did that by default because it knows I replaced virtually all WP files.
The lower right corner within WP dashboard says I'm running 3.1 but at the top of the Dashboard where it lists the number of Posts, Comments, Spam etc...that says I'm running WP 3.0.4
The best part is I'm able to edit pictures as I did before. I'm sure I broke a lot of rules in doing this properly and safely, but I did a backup in case the whole thing failed. Try this at your own risk...I'm not well versed in this to help anybody.
PS - I had disabled all plugins when running 3.1 so I don't believe plugins were the reason for not being able to edit pictures. I also had them disabled while I did this so-called downgrade. I tried to follow standard "upgrade" rules while doing my downgrade.