Excluding Category from Main Blog page

I’ve search the forum and every result refers to the Loop Page which has the code to do what I’m trying to do..

I have a static front page and my main blog page on different WP Page (not the homepage). I have specific WP Page Template setup and is being called properly for the blog page and I have added the additional code to exclude posts from Category 10 on this blog page but it’s not working.

Did something change in v2.6… has the in_category tag been deprecated or something…

here is my loop..

<!-- begin the loop -->

<?php if ( have_posts() ) : while ( have_posts() ) : the_post(); ?>

<!-- If the post is in the category we want to exclude, we simply pass to the next post. -->
<?php if (in_category('10') ) continue; ?>

	<div class="post" id="post-<?php the_ID(); ?>">
		<h1><?php the_title(); ?></h1>

			<div class="entry">
				<?php the_content('Read more...'); ?>
			</div>

	</div>
                 <br />
                 <br />
		<?php endwhile; ?>

		<div class="navigation">
			<div class="alignleft"><?php next_posts_link('&laquo; Previous Entries') ?></div>
			<div class="alignright"><?php previous_posts_link('Next Entries &raquo;') ?></div>
		</div>

	<?php else : ?>

		<h2 class="center">Not Found</h2>
		<p class="center">Sorry, but you are looking for something that isn't here.</p>
		<?php include (TEMPLATEPATH . "/searchform.php"); ?>

	<?php endif; ?>
<!-- close the loop -->

Can someone shed some light on what I’m doing wrong?

Thanks