next_posts_link returns folder twice

My codes looks like this:

<div class="navigation">
			<div class="alignleft"><?php next_posts_link('<div class="PrevArrow">Older Entries</div>') ?></div>
			<div class="alignright"><?php previous_posts_link('<div class="NextArrow">Newer Entries</div>') ?></div>
		</div>

Everything works fine except the links generate are “mysite.com/blog/blog/Index.php?paged=2”. Notice that the “blog” repeats twice which is incorrect, and should be “mysite.com/blog/Index.php?paged=2”.

I have read most of the support forums and can’t seem to find an answer. I do not know what else information is needed so please ask. Thanks in advance.