override post per page settings in category template problem

i cant override my default post per page settings. its a simple custom template for a specific category. the first page displays correctly, but when you click next page it shows the remaining posts and not the post limit i set. and in the title of the browser it says “pages not found” next to the site title. i have googled and googled and searched www.remarpro.com and read many others solutions. which none of them fix my issue. ive been searching for 2 weeks, im sure its something so simple. ive tried every combination of examples in the codex! could someone please tell me what i might be leaving out? here is my code –

[Code moderated as per the Forum Rules. Please use the pastebin]

thanks in advance for any help, i appreciate it a lot!