paging borked when featured post loop and regular loop is on a page

Hello
Googled my brain out – tried everything I could think of – still not joy.

The site has an index.php (using the “Show your latest posts” option) with a featured story and then the rest underneath.

The problem is when you click on the “older posts” it just returns the same first page.

The featured post loop is
`<?php query_posts(‘showposts=1’); $ids = array();
while (have_posts()) : the_post();
$ids[] = get_the_ID(); ?>`

The loop under that displays the posts minus the id from the $ids

$paged = (get_query_var(‘paged’)) ? get_query_var(‘paged’) : 1;
$args=array(
‘post__not_in’ => $ids,
‘paged’=>$paged,
);
query_posts($args);
while (have_posts()) : the_post(); ?>

I tried using WP-Paginate and WP-Pagenavi, no better

Anyone out there know what that what would be causing this?

Thanks