Display all posts from each category, and display one category per page

Hi,

So i’m creating a magazine style site, and basically i’m creating a category for each issue of the magazine. I want to display the latest category (issue) on the homepage which will include all posts from that issue, when i create a new category (issue) i then want this to display on the homepage and the previous category (issue) to move to page 2.

I can get it working but currently it displays every category on the homepage, there is no pagination. If you could shed any light on how to get it working this would be amazing – heres my code:

[code moderated – thanks for using the pastebin]