Found the solution,
Under wp_options table search for option_name = wpsc_category_url_cache
delete its contents and hopefully your pagination & categories link will be back to normal.
Previously the pagination of WP E-commerce was working well before I change the Reading Settings to static page.
I am having the same problem, here’s a brief of my setup
WordPress Version 2.8.4
WP E-Commerce Version 3.7.4
Permalink settings: Day and name
From the Shop pagination it shows double ‘shop’ url:
http://localhost/shop/shop/page/2/
where the correct one should be just
http://localhost/shop/page/2/
I also tried to fix it from Products -> Settings -> Admin
Update Page URLs and Fix Product Group Permalinks
Still doesn’t seems to work correctly.
any ideas how to fix this problem?
Thanks in advance