The solution provided by user ipstenu is not working.
Here is our full index.php file in the theme. The entries are not commented out that i can see...
<?php get_header(); ?>
<div id="content">
<div class="contentcontent">
<?php if (have_posts()) : ?>
<?php while (have_posts()) : the_post(); ?>
<div class="post" id="post-<?php the_ID(); ?>">
<div class="posttitle">
<h2><a href="<?php the_permalink() ?>" rel="bookmark" title="Permanent Link to <?php the_title_attribute(); ?>"><?php the_title(); ?></a></h2>
</div>
<div class="posttext">
<?php the_content('Read the rest of this entry »'); ?>
</div>
<div class="postmeta">
<p><?php the_tags('Tags: ', ', ', '<br />'); ?> Posted in <?php the_category(', ') ?> on <?php the_time('F jS, Y') ?> by <?php the_author() ?> | <?php edit_post_link('Edit', '', ' | '); ?></p>
</div>
</div>
<?php endwhile; ?>
<ul>
<li><?php next_post_link('« Older Entries') ?></li>
<li><?php previous_post_link('Newer Entries »') ?></li>
</ul>
<?php else : ?>
<h2>Not Found</h2>
<p>Sorry, but you are looking for something that isn't here.</p>
<?php include (TEMPLATEPATH . "/searchform.php"); ?>
<?php endif; ?>
</div>
</div>
<?php get_sidebar(); ?>
<?php get_footer(); ?>
Any help would be appreciated.