pagination failure

I built the beautifully customized WP bLog for a client and as soon as I pushed it all up to the live server…all pagination links failed…
for example, here’s my archive.php code

<?php get_header(); ?>
<div id="archive">
	<div id="headerimg"><div class="homelink"><a href="/">Alice Feiring Home</a></div><h1><?php bloginfo('name'); ?></h1></div>
	<div id="content">
		<div class="inner">
			<div id="hp_post_divider" class="divider">
				<div class="divider_top"></div>
				<div class="divider_bottom"></div>
			</div>
			<div id="main-content">
			<?php /* If this is a category archive */ if (is_category()) { ?>
			<h2 class="pagetitle"><?php single_cat_title(); ?></h2>
			<?php } ?>
			<?php while (have_posts()) : the_post(); ?>
			<div class="post">
				<h3 id="post-<?php the_ID(); ?>"><a href="<?php the_permalink() ?>" rel="bookmark" title="Permanent Link to <?php the_title_attribute(); ?>"><?php the_title(); ?></a></h3>
				<small><?php the_time('l, F jS, Y') ?></small>
				<p class="postmetadata"><?php the_tags('Tags: ', ', ', ''); ?> Posted in <?php the_category(', ') ?> | <?php edit_post_link('Edit', '', ' | '); ?>  <?php comments_popup_link('No Comments »', '1 Comment »', '% Comments »'); ?>

			</div>
			<?php endwhile; ?>
			<div class="navigation">
				<div class="alignleft"><?php next_posts_link('&laquo; Older Entries') ?></div>
				<div class="alignright"><?php previous_posts_link('Newer Entries &raquo;') ?></div>
			</div>
			</div><!-- /#main-content -->
			<?php get_sidebar(); ?>
			<div style="clear: left;"></div>
			<?php get_footer(); ?>
		</div><!-- /.inner -->
	</div><!-- /#content -->
</div><!-- /#page -->
<?php wp_footer(); ?>
</body>
</html>

it currently lives at this url:
http://www.appellationfeiring.com/blog/?cat=3
all i want to do is make it so that the search results and any categories with 10+ posts will paginate at 10 per page.
i have the Reading Settings set to display 10 posts at most.
This all worked on my local version, but I’m wondering what factors could possibly be suspect in causing this on the live server. as far as i know it’s set up identically to my local jammy.
thanks in advance and happy 4th!
~tim