Adding WordPress loop to a static .php file

Hello,

I just added a WordPress loop to a page on a static website.

The page is located at:

http://protectionalarms.com/news/

WordPress is installed at: http://protectionalarms.com/wp

What I need is a next/lest button for pagination. I tried some code I found but it kept giving me a 404 error inside the WordPess site. I don’t want the public to see the WordPress site at all.

The loop I used is:

<!-- Start the Loop. -->
 <?php query_posts('showposts=5'); ?>

 <?php if ( have_posts() ) : while ( have_posts() ) : the_post(); ?>

  <div class="post">

 <!-- Display the Title as a link to the Post's permalink. -->
 <div class="title"><?php the_title(); ?></div>

 <!-- Display the Post's Content in a div box. -->
 <div class="entry">
   <?php the_content(); ?>
 </div>

  <!-- Display the date (November 16th, 2009 format) and a link to other posts by this posts author. -->
<div class="entry_date"><?php the_time('F jS, Y') ?> by <?php the_author_posts_link() ?></div>

 </div> <!-- closes the first div box -->

 <!-- Stop The Loop (but note the "else:" - see next line). -->
 <?php endwhile; else: ?>

 <!-- The very first "if" tested to see if there were any Posts to -->
 <!-- display.  This "else" part tells what do if there weren't any. -->
 <p>Sorry, no posts matched your criteria.</p>

 <!-- REALLY stop The Loop. -->
 <?php endif; ?>

Any ideas of how to make this work?

Thanks,

Micah