idk what did it for me but it started working. I enabled the xmlrpc and logging in as admin, did not update to 2.9.1 yet (still on 2.7.1).. kept getting the same error before.

last thing I know I did was copied the zip update into upgrade directory of the wp-content using ftp. The autoupdate was not working for some reason. was about to do backup and re-ftp my site manually. But decided to try and push the mastory with a test blog and Publish successful..doh!?

Was able to "GET" posts and re-edited the blog with an image. its working. hope to hear more answers on this. goodluck.