WP Paging problems

Hey there. I installed WP Paging on my blog and the paging buttons shows up. But I have a problem. It displays the first page fine with 10 posts as I specified it. But when I click page two it displays ALL posts on one page and not the next 10 posts? How do I fix this? This is my code:

<?php endwhile; ?>
                        <?php else : ?>
                    <?php endif; ?>
                                        <?php wp_reset_query(); // for pagination ?>
                                        <?php $paged = (get_query_var('paged')) ? get_query_var('paged') : 1; // for pagination ?>
					<?php $posts_query = new WP_Query($query_string.'tag=homepost&posts_per_page=-1');
						  if(!$posts_query -> have_posts()){
							  $latestposts_no = get_option('designpile_latest_posts');
							  if($latestposts_no != null){
								 $posts_query = new WP_Query($query_string.'posts_per_page='.$latestposts_no);
							  }else{
								 $posts_query = new WP_Query($query_string.'&posts_per_page=10&paged='.$paged);
							  }
						  }
						  $odd_or_even = 'odd'; ?>
                        <?php if ($posts_query -> have_posts()) : while ($posts_query -> have_posts()) : $posts_query -> the_post();  ?>
                        <div class="homePost <?php echo $odd_or_even; ?>">