Erm, OK, I seem to have been lying! Seems to be working now. Maybe cached. I don’t see the line below that you mention. only:
<?php while (have_posts()) : the_post(); ?>
<div class="post">
<h3 id="post-<?php the_ID(); ?>"><a href="<?php the_permalink() ?>" rel="bookmark" title="Permanent Link to <?php the_title(); ?>"><?php the_title(); ?></a></h3>
<small><?php the_time('l, F jS, Y') ?></small>
<div class="entry">
<?php the_content('','1','') ?>
</div>
<p class="postmetadata">Posted in <?php the_category(', ') ?> <strong>|</strong> <?php edit_post_link('Edit','','<strong>|</strong>'); ?> <?php comments_popup_link('No Comments »', '1 Comment »', '% Comments »'); ?></p>