Issues with Arras theme page navigation

Hi,

I have been using Arras theme for couple of my sites. You can checkout the demo of the arras theme at demo.arrastheme.com

I do not use slide show posts section. It has 1 featured posts section and 1 editors pick section and 1 Latest Headlines section. We can configure one or more categories for these sections. I have configured 1 category each for featured posts section and editors pick section and Latest Headlines section. It works great on home page. when I navigate to page 2, it has to show only posts from Latest headlines section. However, it shows posts from all categories.

Kindly help me to resolve this problem.

Thanks,
joseph