Permalink leads to homepage?

Hi!
I’m having some trouble with wordpress…. it seems that when the permalink is clicked it leads to the home page of the blog rather than the post page…. also, it only lets me use the default setting for the permalink URL otherwise it doesn’t find the post string

I had tried out this custom theme before in my computer using MAMP and it had worked fine, but now it doesn’t…. [it was an older version of WP tho]

You can see the site here:
http://www.triarquitectura.cl/index2.php/

And here is the code I’m using within the loop:

<!---BEGIN POST--->
		<div class="post">
       <div class="img">
             <a href="<?php the_permalink() ?>" class="fancybox-iframe"><?php echo get_the_post_thumbnail($page->ID, 'thumbnail'); ?></a>
       </div>
       <div class="sub"><a href="<?php the_permalink() ?>" class="fancybox-iframe"><?php the_title(); ?></a>

	   <font size="-4">
   <?php $key="video"; echo '<a href="'. get_post_meta( $post->ID, $key, true) ;?>
	   <?php $key="ver"; echo '" class="fancybox-iframe">'. get_post_meta( $post->ID, $key, true). '</a>';?>  </font>
       </div>

                        </div>
<!---END POST--->

If you can think of anything I would be very grateful!