Right, as recent posts updates, all of the links go to whatever the very last recent post link is. Right now they all go to Pallax Photo. I assume it must be in that section of the sidebar.php code.
<table cellspacing="0" cellpadding="0" border="0" width="200px" style="margin-top:5px;">
<tr><td width="7px"><img src="<?php bloginfo('stylesheet_directory'); ?>/images/rulu.gif" alt="rulu"></td><td class="z1"></td><td width="7px"><img src="<?php bloginfo('stylesheet_directory'); ?>/images/ruru.gif" alt="ruru"></td></tr>
<tr class="z1"><td class="z1"></td><td>
<table cellspacing="0" cellpadding="0" class="n1" width="100%">
<tr valign="top"><td class="grrlu"></td><td class="grrru"></td></tr>
<tr><td colspan="2">
<li id="archives"><?php _e('Recent Posts:'); ?>
<ul>
<?php
$posts = get_posts('numberposts=25&offset=0');
foreach ($posts as $post) :
?>
<li>
<a href="<?php the_permalink(); ?>" title="<?php the_title() ?>"><?php the_title() ?></a>
</li>
<?php
endforeach;
?>
</ul>
</li>
</td></tr>
</table>
</td><td class="z1"></td></tr>
<tr><td width="7px"><img src="<?php bloginfo('stylesheet_directory'); ?>/images/ruld.gif" alt="ruld"></td><td class="z1"></td><td width="7px"><img src="<?php bloginfo('stylesheet_directory'); ?>/images/rurd.gif" alt="rurd"></td></tr>
</table>