WP-Paginate returning always the same page

Hi, I’m totally new at WP but got a freelance with it and don’t understand where is the problem with this issue.
The problem is I need to add a pagination system to this website, I’m trying with WP-Paginate, it seems to be working because is displaying a lot of page’s numbers at the bottom but no matter which one I click it always return the info of the first page, the link changes, but the displayed page is always the same
here is the code:

<div class="newsPage">
	<?php $query = new WP_Query( 'cat=7&posts_per_page=1' ); ?>
	<?php while ( $query->have_posts() ) : $query->the_post(); ?>
	<div class="podcastImage"><a href="<?php the_permalink(); ?>"><img src="/wp-content/themes/mmaoddsbreaker2/images/dynamics-liveOdds/podcast1.png" width="100" height="124"></a></div>
	<?php endwhile; ?>
	<section>
		<!--<img src="/wp-content/themes/mmaoddsbreaker2/images/dynamics-news/newsBg.png" width="419" height="422" align="right" class="newsBG"> -->
		<h1>News</h1>
		<p class="specialNewsTitle">The Latest <span>MMA News, MMA Previews</span> & Breaking <span>MMA Odds</span> Information!</p>
		<div class="article-wrap">
			<?php /* Start the Loop */ ?>
			<?php $is_odd_post = true; ?>
			<?php $query = new WP_Query( 'cat=3' ); ?>
			<?php while ( $query->have_posts() ) : $query->the_post(); ?>
			<article <?php if ($is_odd_post) { ?> class="odd"<?php $is_odd_post = false; } else { $is_odd_post = true; } ?>>
				<header>
					<div class="thAligned">
						<div class="newsHeadline"> <a href="<?php the_permalink(); ?>">
							<?php
								if(get_the_post_thumbnail()){
									echo get_the_post_thumbnail($post_id);
								}else{
									echo get_avatar( get_the_author_meta('ID'), 460 );
								}
							?>
							</a>
							<h3><a href="<?php the_permalink(); ?>"><?php the_title(); ?></a></h3>
						</div>
					</div>
					<div class="articleDescription">
						<?php the_excerpt(); ?>
						<p class="authorInfo"> By
							<?php the_author(); ?>
							/ MMAOddsbreaker.com Staff Writer /
							<?php the_time( "M j, Y" ); ?>
						</p>
					</div>
				</header>
			</article>
			<?php endwhile; ?>
			<?php // if(function_exists('wp_paginate')) {wp_paginate();} ?>
			<?php // Reset Post Data ?>
			<?php wp_reset_postdata(); ?>
		</div>
		<!--! end of .article-wrap -->
		<?php include("sideBar.php"); ?>
	</section>
	<?php if(function_exists('wp_paginate')) {
		wp_paginate('range=10&anchor=2&nextpage=Next&previouspage=Previous');
	} ?>
</div>

Can someone give me an idea about how to fix this?

Thanks in advance.

Juan Luis Ramirez.

http://wordpress.org/extend/plugins/wp-paginate/