I’m having the same problem with the LondonCreative theme and have spent the last few hours trying to figure out what’s going wrong.
I’ve adjusted the query_posts as per scribu’s suggestion but it doesn’t seem to make a difference.
The theme always finds ‘Paging’ pages to be 404’s.
Scribu I realize that this has to be solved on a per-theme basis but can you give some ideas for where we can start identifying what’s going wrong? I’ve combed through the MainIndex.php but can’t seem to find the spot where it calls the 404 (thinking I could manipulate the logic to ignore “page” in the URL).