Ok so this is what i discovered. When you go to an iPhone you have an MMS MediaNet OPT out that gets put on your account(line). So even if you call them and tell them you have a new phone and they set it up and add MMS and MediaNet to your account(line) your still opted out. After much *****ing with AT&T and speaking to level 3 and higher. The only thing was to have them open a case so the REAL tech at AT&T can log in to your account and remove that OPT.
They seem to be working on a automated way to reverse this. But proves to be harder then it was to opt out then it is to opt back in. Hope this helps anyone else down the road.