[Wordpress] Pagination on index page

[soycharliente]

WordPress 2.9.2 with no plugins.

 

I'm in the process of building my first theme. I've got the index page set, but I cannot figure out how to get the pagination working. The navigational links for viewing older and newer posts render fine. The URLs formatted are fine as: domain.tld/page/#. Nothing happens when I click to view the older or newer posts though. I just see the same thing as the default index. I don't get why it's not working.

 

Here's a copy of my main loop on the index page:

http://wordpress.pastebin.com/3BvXfcTD

 

Let me know if I need to give more information to help diagnose.

Thanks.