Small issue with pagination

I have the following code (altering a template i got) on my index page, which I have set to exclude a category from showing, however when i hit the next page link it shows me the same exact 5 post that were on the first page (only shows the last 5 post no matter how far back or forward i go

<?php if(is_search()):?><div class="copy"><h3 class="pagetitle"><?php _e('Search Results', TDOMAIN);?></h3></div><?php endif;?>

<?php if(is_single()){include(TEMPLATEPATH.'/_postnav.php');}?>

<!-- the Loop -->

		<?php query_posts("cat=-54"); ?>
<?php if (have_posts()) : while (have_posts()) : the_post(); ?>
	<div class="postwrap">
		<div <?php post_class() ?> id="post-<?php the_ID(); ?>">
			<div class="copy fix">
				<div class="post-title">
					<h2><a href="<?php the_permalink(); ?>" rel="bookmark" title="Permanent Link to <?php the_title_attribute(); ?>"><?php the_title(); ?></a></h2>
				</div>
				<!--/post-title -->
				<div class="post-date"><em><?php _e('On', TDOMAIN);?> <?php the_time(get_option('date_format')); ?>, <?php _e('In',TDOMAIN);?> <?php the_category(', ', TDOMAIN) ?>, <?php _e('By', TDOMAIN);?> <?php the_author(); ?></em></div>
				<?php if(is_single() && pagelines('excerptshidesingle')):?>
				<?php else: ?>
				 	<?php if(!pagelines('excerptshide') && VPRO):?><div class="post-excerpt"><?php the_excerpt(); ?></div><?php endif;?>
				<?php endif; ?>

			</div>
			<?php  if(is_single() || !pagelines('excerpts') || !VPRO):?>
				<div class="copy">
					<div class="post-content">
						<?php if(function_exists('the_post_thumbnail') && has_post_thumbnail()): ?>
			            		<div class="postthumb">
									<a href="<?php the_permalink(); ?>" rel="bookmark" title="<?php _e('Permanent Link To', TDOMAIN);?> <?php the_title_attribute();?>">
										<?php the_post_thumbnail('thumbnail');?>
									</a>
					            </div>
						<?php endif; ?>
						<?php the_content(); ?>
						<?php  if(is_single()) link_pages('<p><strong>Pages: </strong> ', '</p>', 'number'); ?>
						<?php edit_post_link('Edit Post', '', '');?>
					</div>
					<div class="tags">
					<?php __(the_tags('Tagged with: ',' &bull; ','<br />'),TDOMAIN); ?>&nbsp;
					</div>

				</div>
				<?php if(pagelines('authorinfo') && VPRO):?>
					<?php include(TEMPLATEPATH.'/_authorinfo.php');?>
				<?php endif;?>

			<?php endif;?>
				<div class="post-footer pfooterlight">

						<div class="left">
							<span><?php comments_number(0, 1, '%'); ?></span>
							<a href="<?php the_permalink(); ?>#comments" title="<?php _e('View Comments');?>"><?php _e('Comments');?></a>
						</div>
						<div class="right">
							<?php edit_post_link('Edit Post', '', ' | ');?><span><a href="<?php the_permalink(); ?>#respond" title="<?php _e('Leave A Response');?>"><?php _e('Leave A Response');?></a></span></div>

					<div class="clear"></div>

				</div>
				<div class="hl"></div>
		</div><!--post -->
	</div>

	<!-- comments -->
		<?php if(is_single()):?>
			<?php include(TEMPLATEPATH.'/_commentsform.php');?>
	<!-- /comments-->

		<?php endif; endwhile; ?>

	<?php include(TEMPLATEPATH.'/_pagination.php');?>

<?php else : ?>

	<h2 class="center"><?php _e('Nothing Found');?></h2>
	<p class="center"><?php _e('Sorry, what you are looking for isn\'t here.');?></p>
	<div class="center fix"><?php get_search_form(); ?></div>

<?php endif; ?>