Well, after about a week straight of trying every possible permalink fix I decided to try and go with a completely new wordpress install, redirect my database, upgrade, redo, etc etc etc. I am using netfirms by the by.
Anyway, so everything is restructure and I am redirecting the domain name http://www.sportnique.com to my old database.
It didn't fix the problem, no next page or previous page links work with permalinks. But I do know what is causing or think I know what is causing the problem.Here goes quick explain.
The main problem is that the next page link adds the directory names before page/2/ eventhough everythign is set up correctly to forward the domain name to the correct folders (such as wordpress and blog uri as well as teh domain forwarding address) it places /this/nfblog before page/2/ such as http://www.sportnique.com/this/nfblog/page/2/
where if it just said http://www.sportnique.com/page/2/ for the main post page
it would work I can't seem to rid myself of the this/nfblog
Note this also happens within my admin page going back to previous posts.