Category Pagination

I read most recent posts about pagination category pages but I just can’t get it to work. I tried few plugins with the same results. After the third page I get 404.

Here is my code:

<?php

query_posts( array(
	'posts_per_page' => 3,
	'cat' => "5",
	'paged' => ( get_query_var('paged') ? get_query_var('paged') : 1 ),
));

if ( have_posts() ) : while ( have_posts() ) : the_post();

	echo get_the_content(); 

?>

<?php endwhile; else: ?>

<?php endif; ?>

	<?php if (  $wp_query->max_num_pages > 1 ) : ?>
	<?php previous_posts_link( __( '<span></span> Previous Stories ', 'themename' ) ); ?>
	<?php next_posts_link( __( 'More Stories <span></span>', 'themename' ) ); ?>

<?php endif; ?>

<?php wp_reset_query(); ?>