I have a page which lists all my "featured posts".
To display these posts I am using this piece of code:
<?php query_posts('cat=1&showposts='.get_option('posts_per_page')); ?>
as written in the codex: http://codex.wordpress.org/Category_Templates#What_categories_do_you_show_to_the_visitors.3F
This line shows me only my posts from category 1 and paginate them accordingly the wp-admin panel option.
But when I go to the page #2 or #3, I view always the page #1.