i'm running the lattest wordpress version and noticed a strange behaviour when searching my blog while having permalinks set up.
I have selected %category%/%postname% as my permalink structure and when i search for 'lorem' my url looks like this http://localhost/wordpress/?s=lorem
i don't really care about the question mark on the url for search matters, the thing is when you have more search results than 10 (the default value defined on dashboard options) the <?php previous_posts_link('older results') ?> function returns http://localhost/wordpress/page/2?s=lorem which in turn, results on a 404 error redirecting to my homepage.
also, when deactivating my custom permalink structure, it all works just fine.
i've been searching a solution for this strange behaviour but have been unsuccessful up until now.