Pagination Problem

Hi everyone,

I have a little problem with the pagination. In homepage 10 Recent posts displays. I tried to add pagination before footer section by adding this code:

<?php kriesi_pagination($pages = '', $range = 2); ?>

Now, pagination is visible at the right place but /page/2/ URL’s are not working. Same (recent) 10 posts shows up in every /page/# URL’s.

This is the related code from functions.php.

function kriesi_pagination($pages = '', $range = 2)
{
     $showitems = ($range * 2)+1;  

     global $paged;
     if(empty($paged)) $paged = 1;

     if($pages == '')
     {
         global $wp_query;
         $pages = $wp_query->max_num_pages;
         if(!$pages)
         {
             $pages = 1;
         }
     }   

     if(1 != $pages)
     {
         echo "<div class='pagination'><div style='margin-top:7px; float:right; font-size:10pt; font-family:Tahoma;'>Page ".$paged." of ".$pages."</div>";
         if($paged > 2 && $paged > $range+1 && $showitems < $pages) echo "<a href='".get_pagenum_link(1)."'>&laquo;</a>";
         if($paged > 1 && $showitems < $pages) echo "<a href='".get_pagenum_link($paged - 1)."'>&lsaquo;</a>";

         for ($i=1; $i <= $pages; $i++)
         {
             if (1 != $pages &&( !($i >= $paged+$range+1 || $i <= $paged-$range-1) || $pages <= $showitems ))
             {
                 echo ($paged == $i)? "<span class='current'>".$i."</span>":"<a href='".get_pagenum_link($i)."' class='inactive' >".$i."</a>";
             }
         }

         if ($paged < $pages && $showitems < $pages) echo "<a href='".get_pagenum_link($paged + 1)."'>&rsaquo;</a>";
         if ($paged < $pages-1 &&  $paged+$range-1 < $pages && $showitems < $pages) echo "<a href='".get_pagenum_link($pages)."'>&raquo;</a>";
         echo "</div>\n";
     }
}

Hope you can help me! Thanks.