Where did you put the extra code? I am having exactly the same problem and have tried all sorts of solutions and still can’t fix it!
I’ve got the same question where did you place this code…
<?php
$paged = (get_query_var(‘paged’)) ? get_query_var(‘paged’) : 1;
query_posts(“cat=17&posts_per_page=3&paged=$paged”);
?>