Previous entries – Next entries

I need help resolving an issue I created for myself when I created a special page designed to show posts in “mullet” style archive for a particular category. My problem is the previous entries – next entries links only reload the original page as page #2, although there are more posts to be displayed. How do I resolve this so that the next or previous historical posts can been navigated to?
Example of page can be seen

The code for the page is as follows:

<?php
/*
Template Name: Special Featured Page - Template
*/
?>

<?php get_header(); ?>

<div id="featured-top">
  <?php
 // Include featured page top
	include(TEMPLATEPATH . '/featured-page-top.php'); ?>
</div>
<!-- END OF TOP -->
<div id="featured-bottom">
  <div id="featured-content">
  <?php query_posts('category_name=Featured Articles'); ?>
  <?php if (have_posts()) : ?>
  	<?php $count = 0; ?>

  <?php $post = $posts[0]; // Hack. Set $post so that the_date() works. ?>
  <?php /* If this is a category archive */ if (is_category()) { ?>
  <h2 class="pagetitle"><?printf( __('%s','branfordmagazine'), single_cat_title('', false)); ?></h2>
  <?php /* If this is a tag archive */ } elseif( is_tag() ) { ?>
  <h2 class="pagetitle">
    <?php _e('Posts Tagged','branfordmagazine'); ?>
    ‘
    <?php single_tag_title(); ?>
    ’</h2>
  <?php /* If this is a daily archive */ } elseif (is_day()) { ?>
  <h2 class="pagetitle"><?printf( __('Archive for %s','branfordmagazine'), get_the_time(__('F jS, Y','branfordmagazine'))); ?></h2>
  <?php /* If this is a monthly archive */ } elseif (is_month()) { ?>
  <h2 class="pagetitle"><?printf( __('Archive for %s','branfordmagazine'), get_the_time(__('F Y','branfordmagazine'))); ?></h2>
  <?php /* If this is a yearly archive */ } elseif (is_year()) { ?>
  <h2 class="pagetitle"><?printf( __('Archive for %s','branfordmagazine'), get_the_time('Y')); ?></h2>
  <?php /* If this is a search */ } elseif (is_search()) { ?>
  <h2 class="pagetitle">
    <?php __('Search Results','branfordmagazine'); ?>
  </h2>
  <?php /* If this is an author archive */ } elseif (is_author()) { ?>
  <h2 class="pagetitle">
    <?php _e('All entries by this author','branfordmagazine'); ?>
  </h2>
  <?php /* If this is a paged archive */ } elseif (isset($_GET['paged']) && !empty($_GET['paged'])) { ?>
    <h2 class="pagetitle">
      <?php _e('Blog Archives','branfordmagazine'); ?>
    </h2>
    <?php } ?>
  <div class="navigation">
    <div class="alignleft">
      <?php next_posts_link(__('Previous entries','branfordmagazine')) ?>
    </div>
    <div class="alignright">
      <?php previous_posts_link(__('Next entries','branfordmagazine')) ?>
    </div>
  </div>
  <?php while (have_posts()) : the_post(); ?>
  	<?php $count++; ?>

  <div class="post">
    <h4 id="post-<?php the_ID(); ?>"><a href="<?php the_permalink() ?>" rel="bookmark" title="<?php __('Permanent Link to','branfordmagazine');?> <?php the_title(); ?>">
      <?php the_title(); ?>
      </a></h4>
    <small>
    <?php the_time(__('M jS, Y','branfordmagazine')); ?>
    |
    <?php _e('By','branfordmagazine');?>
    <?php the_author_posts_link('namefl'); ?>
    |
    <?php _e('Category:','branfordmagazine');?>
    <?php the_category(', ') ?>
    <?php edit_post_link('Edit', ' | ', ''); ?>
    </small>

	<?php if ($count == 1) : ?>

    <div class="entry">
      <?php the_content("<p class=\"serif\">" . __('Read the rest of this page', 'branfordmagazine') ." &raquo;</p>"); ?>
    </div>

	<?php else : ?>

	<div class="entry">
	<?php the_excerpt() ?>
	</div>

	<?php endif; ?>

    <p class="postmetadata">
      <?php if ( function_exists('the_tags') ) {
			the_tags('<span class="tags"><strong>Tags:</strong> ', ', ', '</span>'); } ?>
      <?php _e('Posted in','branfordmagazine');?>
      <?php the_category(', '); ?>
      |
      <?php comments_popup_link(__ ('No Comments »', 'branfordmagazine'), __ ('1 Comment »', 'branfordmagazine'), __ngettext ('% comment', '% comments', get_comments_number (),'branfordmagazine')); ?>
    </p>
    <hr />
    <br />
  </div>
  <?php endwhile; ?>
  <div class="navigation">
    <div class="alignleft">
      <?php next_posts_link(__('Previous entries','branfordmagazine')) ?>
    </div>
    <div class="alignright">
      <?php previous_posts_link(__('Next entries','branfordmagazine')) ?>
    </div>
  </div>
  <?php else : ?>
  <h2 class="center">
    <?php __('Not Found','branfordmagazine') ?>
  </h2>
  <?php include (TEMPLATEPATH . '/searchform.php'); ?>
  <?php endif; ?>

  </div>
<!-- END OF CONTENT -->  

<div id="featured-sidebar">

    <?php 	/* Widgetized sidebar, if you have the plugin installed. */
					if ( !function_exists('dynamic_sidebar') || !dynamic_sidebar('Featured Page Textwidgets') ) : ?>
    <?php endif; ?>

</div>
</div>
<!-- END BOTTOM -->
<?php get_footer(); ?>

Thank you.