Okay, now the page numbers show up and they link to http://www.mysite.org/page/2/, but it still shows the same posts. I am not sure where it is supposed to be statementing the loop.
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Looks like you are mixing a loop for WP_Query with a ‘foreach’ loop, and did not set $paged before your WP_Query().
Put this just before the WP_Query() line:
<?php
global $paged;
$paged = (get_query_var('paged')) ? get_query_var('paged') : ((get_query_var('page')) ? get_query_var('page') : 1);
?>
That should allow the pagination to work, but does not address the problem of mixing WP_Query() with foreach. You should be able to do away with the foreach related lines and the special pagination function and use the built-in WP function paginate_links().
Okay, here’s what I got. It is still not paginating correctly. Every page still shows the same information. Somehow, the loop is not getting the next set of instances.
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Your query does not have any arguments:
$new_query->query();
It at least has to have the paged argument, and probably others:
$new_query->query("paged=$paged");
