Pagination

Hello all,
I have looked around the forums and seen some things that look like pagination for WP. However, I want to be sure and ask for something specifically and see what you peeps turn up.
Problem:
When the categories start to fill up with posts and someone clicks on the category I want it so that if there are more then 5 ( most likely ) that the screen will show 5 and at the bottom have a pagination area so that they can get to page 2, 3, 4 >> .. whatever.
Is there something like this built into 1.2 or is this something I have to find a hack for? If so,, then please tell me which is the best hack availalbe to achieve this.
Kind regards,
gravity