Using the Loop with page templates

Hi, I’ve got a somewhat lovely site over at scottwallick.com with my own template. I’ve made a page template to display basically what the index.php would display in hopes of making my site more like a CMS.

However! when I used my mock-index.php page template, the

<div class="navigation"><br />
<div class="alignleft"><?php next_posts_link('&laquo; Older posts') ?></div><br />
<div class="alignright"><?php previous_posts_link('Newer posts &raquo;') ?></div><br />
</div><!-- END NAVIGATION -->

gives me a 404 error. Why are the links in the previous/next_post_link code giving me the incorrect href‘s for the pagination of what works on the index.php.

If this doesn’t make sense, visit my home page, then click on the ‘Blog’ link on the sidebar. Scroll down to the bottom and click on ‘Older posts’. You should get a 404 error.

Thoughts?