Excerpt showing text from wrong post

Hey all,
I have a problem that I’m sure is fairly simple but has been driving me nuts.
Here’s the problem: I have my archives page set up so that the latest post in the current category is showed with it’s excerpt, and below that is a list of all the posts in the category. Everything is working fine, except the excerpt for the latest category post is showing the excerpt from the first post in the category!
You can see my code here: http://pastebin.ca/1221049
I would greatly appreciate anyone’s help on this.
Thanks!