Alright I did some tinkering around and apparently the culprit of the problem rests with the posts_per_page condition. Once I changed it to this:
<div class="c3 ptxxx pbxxx">
<h1 class="cap cnt shd pbxx">Latest News in Downtown Asheville</h1>
<?php if (have_posts()) : ?>
<?php $paged = (get_query_var('paged')) ? get_query_var('paged') : 1; query_posts("&cat=30&paged=$paged"); ?>
<?php while (have_posts()) : the_post(); ?>
<?php static $count1 = 1; ?>
<div class="c <?php if($count1%3==0) { echo 'last'; } ?>">
…. more code below but not relevant
That shows 10 articles with the pagination being correct. However, thinking that if I just changed the General preferences in dashboard / Reading to 9 blog posts articles … it still stuck with 10. This is decent enough cause at least I am not encountering an error.
Does anyone know of a thread that can have the tweak:
1. support an offset (so that the featured story doesn’t repeat)
doing this, disables the pagination from working
2. control the posts_per_page count
doing this, generates an additional page in the pagination that leads to a 404 nowhere page