Problem with archive permalinks

I’ve just installed WordPress and for the most part it is working fine. However I am having a problem with my permalinks.
I am using the format /archive/%day%/%monthnum%/%year%/%postname%/ and have the outputted htaccess code correctly implemented.
The problem is that instead of the correct link being outputted in the archive section it generates http://www.gordonlawrie.com/archive/%day%/07/ which is obviously not what it’s meant to do.
If you want to have a look at the site to see what I mean it’s at http://www.gordonlawrie.com
Any help would be greatly appreciated.
Cheers,
Gordon.