permalinks, mod_rewrite, and category

Hello. I have a WordPress install (2.0.2) where my previous and next links do not work.
My WordPress install is located at / where I use a static page with the slug “home” as my homepage. My blog is located https://www.jappler.com/blog/. When I click on the next or previous links on my blog, I get the URL: https://www.jappler.com/blog/page/2/ That link takes you to the current /blog/ page, not to any previous entries.

After doing some experimenting, this URL seems to work for the general category:
https://www.jappler.com/archive/category/general/page/2/

My permalink structure is: /archive/%year%/%monthnum%/%day%/%postname%/

I did not have any problems until I upgraded to WordPress 2.0.

My .htaccess file has the following mod_rewrite info:

<IfModule mod_rewrite.c>
RewriteEngine On
# These are the standard WordPress Rules
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /index.php
</IfModule>

Any help would be greatly appreciated.
Thanks!