Hi all
Got a solution if anyone is interested, i've tested it 4 times and its 100% provided u have enough gold to pay off the total bounty amount, if u dont have enough gold start saving up cos i believe the only other way out is the stormcloak route
Here is what i did the easy way:
Enter Markarth and avoid all dialogue and combat with the retarded guards, and find somewhere a bit secluded (like the river at the bottom) Sneak and use an invisibility potion until you are hidden again. Next, find your way to the Shrine of Talos while sneaking making sure your not followed by anymore guards. As soon as u enter the shrine save the game, just in case something goes wrong(like killing the wrong guard lol). Walk forward a little and you will be stopped by a corrupt guard with a slightly different dialogue this time, no matter what you say to him you will still be stuck in an endless loop. What you need to do next is exit the conversation so that they start attacking you again, kill all the guards in the shrine apart from the one you just spoke to (a bit tricky cos they all look the same) when he is the only one left sheath ur weapon and he will start a new dialogue with the pay off bounty option! Pay it and Voila! u are now free
i'm sad so many ppl across the net have wiped save games and started over because of this glitch, this should take 5 - 15 minutes depending on the difficulty levels.
I pray this helps ppl in time before they restart. Blessings of Talos upon you my Skyrim brothers and sisters.