Loop Problems

Below is the code for my index page. What I am trying to do is have one loop that pulls from one cat and one that pulls from another. I have followed every tutorial i can find here and in the codex, but seem to be missing something really small. Help?

<?php get_header(); ?>
        <div id="waxpaper">

	<div id="content" class="narrowcolumn">

	<?php query_posts('showposts=1&cat=1'); ?>
    <?php while (have_posts()) : the_post(); ?>

			<div class="post" id="post-<?php the_ID(); ?>">
				<h2><a href="<?php the_permalink() ?>" rel="bookmark" title="Permanent Link to <?php the_title_attribute(); ?>"><?php the_title(); ?></a></h2>
				<small><?php the_time('F jS, Y') ?> by <?php the_author() ?></small>

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

				<p class="postmetadata"><?php the_tags('Tags: ', ', ', '<br />'); ?> Posted in <?php the_category(', ') ?> | <?php edit_post_link('Edit', '', ' | '); ?>  <?php comments_popup_link('No Comments »', '1 Comment »', '% Comments »'); ?></p>
	  </div>

		<?php endwhile; ?>
<div>

<?php query_posts('showposts=1&cat=2'); ?>
    <?php while (have_posts()) : the_post(); ?>

			<div class="post" id="post-<?php the_ID(); ?>">
				<h2><a href="<?php the_permalink() ?>" rel="bookmark" title="Permanent Link to <?php the_title_attribute(); ?>"><?php the_title(); ?></a></h2>
				<small><?php the_time('F jS, Y') ?> by <?php the_author() ?></small>

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

				<p class="postmetadata"><?php the_tags('Tags: ', ', ', '<br />'); ?> Posted in <?php the_category(', ') ?> | <?php edit_post_link('Edit', '', ' | '); ?>  <?php comments_popup_link('No Comments »', '1 Comment »', '% Comments »'); ?></p>
			</div>

		<?php endwhile; ?>

		<div class="navigation">
			<div class="alignleft"><?php next_posts_link('&laquo; Older Entries') ?></div>
			<div class="alignright"><?php previous_posts_link('Newer Entries &raquo;') ?></div>
		</div>

	<?php else : ?>

		<h2 class="center">Not Found</h2>
		<p class="center">Sorry, but you are looking for something that isn't here.</p>
		<?php include (TEMPLATEPATH . "/searchform.php"); ?>

	<?php endif; ?>
	</div>

<?php get_sidebar(); ?>

       </div>

<?php get_footer(); ?>