404 with WordPress blog in own dir and static home page

Hello,

I have WP 2.3.2 setup on a new domain, with the files sitting in a subdirectory called ‘blog’ —

https://www.deankennedy.com/blog as WordPress address URL and
https://www.deankennedy.com as blog address URL

This works fine on another site I have (www.dmk.com.au) — where front page is in root, and a static page (with a small loop).

I have the identical setup for https://www.deankennedy.com (.htaccess, permalinks, options, web settings etc) … but when I try https://www.deankennedy.com/blog/ to get my latest posts (which works fine on dmk.com.au with the same settings), I get a 404 error (within my blog template).

I’m tearing out my hair trying to figure what setting is wrong … any help?

Both setups seem identical to me, but I get a 404 error for one (deankennedy.com), and the list of latest posts for the other (dmk.com.au).

When I type in fully https://www.deankennedy.com/blog/index.php — I get a “no posts match your criteria” message. The web server is setup so that index.php is one of the Index Pages.

I can’t think of what else could do this, and I’ve googled, looked through WP docs and forum posts and followed Giving WordPress Its Own Directory (which works fine — I just don’t get a list of posts at the /blog/ address).