Custom Query /page/* gives 404

Using a custom query, all next pages give a 404 error.
Permalink structure is /%category%/%postname%/ (same with /%postname%/).

Using the default non-rewrite, I can reach page 2, but all other queries on the page are broken.

Code: http://pastebin.com/zwTkmc9f

Driving me bonkers.
Assistance is much appreciated!