Page change issues! urgent

Hey guys, i have an issue.Im trying to make the pages have 10 items per page, but if you click next, only 1 article changes…

my site is currently at http://www.vclistings.com

Im following this hack i found on the forums here

http://wordpress.org/support/topic/20617?replies=2

Here is my index.php file

<?php get_header(); ?>

	<div id="content" class="narrowcolumn">

	<?php if (have_posts()) : ?>

		<?php while (have_posts()) : the_post(); ?>

			<div class="post" id="post-<?php the_ID(); ?>">
<div class="mainpost">

<?php foreach((get_the_category()) as $cat)
 { echo ' <img style="float:left; padding-right:5px;" src="http://vclistings.com/wp-content/themes/default/images/' . $cat->cat_ID . '.jpg"
alt="' . $cat->cat_name . '" />'; } ?>

				<h2><a href="<?php the_permalink() ?>" rel="bookmark" title="Permanent Link to <?php the_title(); ?>"><?php the_title(); ?></a></h2>
				<small><?php the_time('F jS, Y') ?> <!-- by <?php the_author() ?> --></small>

				<div class="entry">
					<?php the_content('Read the rest of this entry &raquo;'); ?>
				</div>

				<p class="postmetadata"><?php edit_post_link('Edit', '', ' | '); ?>  </p>
			</div>
</div>

<div class="subposts">

<?php
$lastposts = get_posts('numberposts=5&offset=1');

foreach($lastposts as $post) :
    setup_postdata($post);
    ?>
<?php foreach((get_the_category()) as $cat)
 { echo ' <img style="float:left; padding-right:5px;" src="http://vclistings.com/wp-content/themes/default/images/' . $cat->cat_ID . '.jpg"
alt="' . $cat->cat_name . '" />'; } ?>

    <h2><a href="<?php the_permalink() ?>" rel="bookmark" title="Permanent Link to <?php the_title(); ?>"><?php the_title(); ?></a></h2>

				<small><?php the_time('F jS, Y') ?> <!-- by <?php the_author() ?> --></small> </ br></ br></ br>

    <?php the_content(); ?>

<?php endforeach; ?>
</div>

		<?php endwhile; ?>

		<div class="navigation">
			<div class="alignleft"><?php next_posts_link('&laquo; Previous Entries') ?></div>
			<div class="alignright"><?php previous_posts_link('Next Entries &raquo;') ?></div>
		</div>

	<?php else : ?>

		<h2 class="center">Not Found</h2>
		<p class="center">Sorry, but you are looking for something that isn't here.</p>
		<?php include (TEMPLATEPATH . "/searchform.php"); ?>

	<?php endif; ?>

	</div>

<?php get_sidebar(); ?>

<?php get_footer(); ?>

Any help would be really really good