Oh, I figured this darn thing out. Pretty good thing as I’ve search for help on this for days.
Anywayz, for anyone who may stumble across the same problem, here’s a solution –
In order for pagination to work on the category specific product pages i.e when you use [wpsc_products category_url_name=’yourproductname’] to call the products on another page other than the default product page, make sure the name of your category (created through wp ecommerce settings) matches the name of the page you are calling the products.
Example if you create a product group called magicians in wp ecommerce, make sure the page you display [wpsc_products category_url_name=’magicians’] is also called magicians and not magicians5 or something else.
I use custom permalinks /%category%/%postname%/ – I’m not sure if this makes a difference but there you go.
Sorry, I don’t know how to explain this better but if anyone needs help just PM me.