In 3.1.2 active links was broken, so here you can find fix

Find global $paged under function wp_page_numbers
Add

if ( !$max_page ) { $max_page = $wp_query->max_num_pages; }
//ADD THIS
if( !$paged && $wp_query->query_vars['paged'] && $wp_query->query_vars['paged'] > 1 ) {
	$paged = $wp_query->query_vars['paged'];
}
//ADD THIS END
if ( !$paged ) { $paged = 1; }