I submitted to Tech Support and it is a bug. Their response:
I appreciate your patience with this issue. After further analysis, it appears that the error 984141 is a bug. I was able to reproduce it at my end with a sample code. I have logged it in with development for further research and clarification. You can reference this bug using [#NIM075577 Scaling issue for the tiles when switching between ESRI StreetMap and ESRI Imagery Map.
Thank you for bringing this issue to our attention. I have marked this issue as a medium priority issue.
(in my case, I was switching from the ESRI StreetMap to the City's Orthos - both tiled mapservices)
For me, it is a high priority issue. Since the tiled mapservice will scale correctly after "just panning a tiny little bit", anyone know how I can do this programmatically without it repeatedly calling the "extentChange" event? Have asked Tech support this question also.
Thanks,
Carmen