Next/Previous not working

The problem I’m having is that next_posts_link() & previous_posts_link() are leading to an invalid url. I’ve searched for clues to fix this, and tried several things, without success.

I’m working on a blog at http://www.lakeholidaynews.com

It’s running WP 2.0.2, and both the WP & Blog URI show as http://www.lakeholidaynews.com in the admin panel.

Permalinks, pages, logging in etc go to valid links and work fine.

But this code in index.php…
<?php next_posts_link('&laquo; Previous Entries') ?>

produces a link to something like this…
http://www.lakeholidaynews.com/lakeholidaynews.com/index.php?paged=3

which is invalid, because it added in the extra “lakeholidaynews.com/”. If that’s deleted manually, the page comes up fine.

When I was searching for ways to fix this, I saw something on podz’s guide on checking/editing ‘site_url’ and ‘home’ in phpAdmin to make sure they do not contain a trailing ‘/’. They did in the table, but not in the admin panel. I changed them in phpAdmin so they didn’t, but the change had no impact on the problem. I also deleted the cache, which caused some issues for me in 2.0.1, to no avail. I think I read somewhere that 2.0.2 doesn’t use the cache but when it’s late you experiment…. I also changed themes to see if there was something possibly theme related, but that didn’t work.

Any thoughts on how can I get next_posts_link() to visit the right url?

Thanks in advance…