yet another pagination question

Hey guys, i am having a pagination issue and it’s something that is probably really easy, i am just not finding the answer. on my main page i am limiting the post display to just the news category, however, it is paginating for all posts no matter the category, so on some pages i have no content showing. here is my code:

<?php if ( have_posts() ) : while ( have_posts() ) : the_post(); ?>
<?php if ( is_page() ) { ?>
<?php the_content(); ?>
<?php } else { ?>
<?php if (in_category('4') && is_home() ) continue; ?>
<h1><?php the_date(); ?> | <?php the_title(); ?></h1>
<?php the_content(); ?>
<?php } ?>
<?php endwhile; else: ?>
Sorry, no posts matched your criteria.

<?php endif; ?>

<?php if(is_category()) { wp_page_numbers(); } ?>
<?php if(is_home()) { wp_page_numbers(); } ?>

so basically, i only want the main page (home) to paginate stuff from the category “news” (id 1). what am i missing?
where did it all go wrong?!!