Pagination with custom query_post child pages

Hi

I have a query_post in a category page which fetches information from custom fields in the child pages and displays the two latest products from the sub-category on the category page.
ie

Category page  -|
(main Products) |
 -bike          |-Sub-category(bikes)-|
 -bike          |                     |--bike
 -tent          |                     |--bike
 -tent          |                     |--bike
                |
                |-Sub-category(tents)-|
                                      |--tent
                                      |--tent
                                      |--tent

Now this works perfectly, what I need some help on is how to include a pagination in the category page so after the 5th or 6th product fetched, the following products will be displayed on a new page?
ie

Category page(main Products)
-bikes
-bikes
-tents
-tents
-new
-new
-pagination-

I have already tried including the pagination in the query_post but this results in a pagination link under each sub-category product.
ie

Category page(main Products)
-bikes
-bikes
-pagination-

-tents
-tents
-pagination-

Here is query_post code:

[large amount of code moderated according to forum rules – please use the pastebin]

I would be so grateful for any help and hope I have explained myself clearly. ??