Nav-above not showing at all in index.php

It doesn’t show on the home page, which is expected, and good… but the little older/newer posts links don’t show up when i go to ?paged=2/3/4.. etc either.

I have looked at the index.php but I can’t see any problem with it in that respect.
Any idea what could be causing this?

here is the code from my index.php btw.. (sorry it is so long, but I thought it would be better for me to include)

<?php get_header() ?>
	<div id="container">
		<div id="content">
		<div id="nav-above" class="navigation">
				<div class="nav-previous"><?php next_posts_link(__('<span class="meta-nav">&laquo;</span> Older posts', 'sandbox')) ?></div>
				<div class="nav-next"><?php previous_posts_link(__('Newer posts <span class="meta-nav">&raquo;</span>', 'sandbox')) ?></div>
			</div>
</div><!-- #content -->
<?php $my_query = new WP_Query('cat=1&showposts=1');
  while (is_home() && !is_paged() && $my_query->have_posts()) : $my_query->the_post();
  $do_not_duplicate = $post->ID; ?>
<div id="currentcontent">
			<div id="post-<?php the_ID() ?>" class="currentpost">
				<h3>current episode:</h3>
               <h1 class="entry-title"><a href="<?php the_permalink() ?>" title="<?php printf(__('Permalink to %s', 'sandbox'), wp_specialchars(get_the_title(), 1)) ?>" rel="bookmark"><?php the_title() ?></a></h1>
				<div class="entry-date"><abbr class="published" title="<?php the_time('Y-m-d\TH:i:sO'); ?>"><?php unset($previousday); printf(__('%1$s – %2$s', 'sandbox'), the_date('', '', '', false), get_the_time()) ?></abbr></div>
				<div class="entry-content">
<?php the_content(''.__('Read More <span class="meta-nav">&raquo;</span>', 'sandbox').''); ?>

<?php link_pages("\t\t\t\t\t<div class='page-link'>".__('Pages: ', 'sandbox'), "</div>\n", 'number'); ?>
				</div>
				<div class="entry-meta">
					<span class="author vcard"><?php printf(__('By %s', 'sandbox'), '<a class="url fn n" href="'.get_author_link(false, $authordata->ID, $authordata->user_nicename).'" title="' . sprintf(__('View all posts by %s', 'sandbox'), $authordata->display_name) . '">'.get_the_author().'</a>') ?></span>
					<span class="meta-sep">|</span>
					<span class="cat-links"><?php printf(__('Posted in %s', 'sandbox'), get_the_category_list(', ')) ?></span>
					<span class="meta-sep">|</span>
					<?php the_tags(__('<span class="tag-links">Tagged ', 'sandbox'), ", ", "</span>\n\t\t\t\t\t<span class=\"meta-sep\">|</span>\n") ?>
<?php edit_post_link(__('Edit', 'sandbox'), "\t\t\t\t\t<span class=\"edit-link\">", "</span>\n\t\t\t\t\t<span class=\"meta-sep\">|</span>\n"); ?>
					<span class="comments-link"><?php comments_popup_link(__('Comments (0)', 'sandbox'), __('Comments (1)', 'sandbox'), __('Comments (%)', 'sandbox')) ?></span>
				</div>
			</div><!--  .post -->
<?php comments_template() ?>

</div><!-- #currentcontent -->
<?php endwhile ?>

<div id="content">
 <?php if (have_posts()) : while (have_posts()) : the_post();
  if( $post->ID == $do_not_duplicate ) continue; update_post_caches($posts); ?>

<div id="post-<?php the_ID() ?>" class="<?php sandbox_post_class() ?>"></a>
                <a name="older"><h2 class="entry-title"><a href="<?php the_permalink() ?>" title="<?php printf(__('Permalink to %s', 'sandbox'), wp_specialchars(get_the_title(), 1)) ?>" rel="bookmark"><?php the_title() ?></a></h2>
				<div class="entry-date"><abbr class="published" title="<?php the_time('Y-m-d\TH:i:sO'); ?>"><?php unset($previousday); printf(__('%1$s – %2$s', 'sandbox'), the_date('', '', '', false), get_the_time()) ?></abbr></div>
				<div class="entry-content">
<?php the_content(''.__('Read More <span class="meta-nav">&raquo;</span>', 'sandbox').''); ?>

<?php link_pages("\t\t\t\t\t<div class='page-link'>".__('Pages: ', 'sandbox'), "</div>\n", 'number'); ?>
				</div>
				<div class="entry-meta">
					<span class="author vcard"><?php printf(__('By %s', 'sandbox'), '<a class="url fn n" href="'.get_author_link(false, $authordata->ID, $authordata->user_nicename).'" title="' . sprintf(__('View all posts by %s', 'sandbox'), $authordata->display_name) . '">'.get_the_author().'</a>') ?></span>
					<span class="meta-sep">|</span>
					<span class="cat-links"><?php printf(__('Posted in %s', 'sandbox'), get_the_category_list(', ')) ?></span>
					<span class="meta-sep">|</span>
					<?php the_tags(__('<span class="tag-links">Tagged ', 'sandbox'), ", ", "</span>\n\t\t\t\t\t<span class=\"meta-sep\">|</span>\n") ?>
<?php edit_post_link(__('Edit', 'sandbox'), "\t\t\t\t\t<span class=\"edit-link\">", "</span>\n\t\t\t\t\t<span class=\"meta-sep\">|</span>\n"); ?>
					<span class="comments-link"><?php comments_popup_link(__('Comments (0)', 'sandbox'), __('Comments (1)', 'sandbox'), __('Comments (%)', 'sandbox')) ?></span>
				</div>
			</div><!-- .post -->

<?php comments_template() ?>
<?php endwhile; endif; ?>

			<div id="nav-below" class="navigation">
				<div class="nav-previous"><?php next_posts_link(__('<span class="meta-nav">&laquo;</span> Older posts', 'sandbox')) ?></div>
				<div class="nav-next"><?php previous_posts_link(__('Newer posts <span class="meta-nav">&raquo;</span>', 'sandbox')) ?></div>
			</div>
		</div><!-- #content -->
	</div><!-- #container -->
<?php if (is_home() && !is_paged()) : ?>
  <?php include ('sidebar2.php'); ?>
  <?php else : ?>
     <?php get_sidebar() ?>
  <?php endif; ?>
<?php get_footer() ?>