Ureeka Theme previous page leads to 404

[ Moderator Note: Please post code or markup snippets between backticks or use the code button. Or better still – use the pastebin ]

If someone could please please help me I’d much appreciate it. I installed the Ureeka theme and it works perfectly apart from, when I click on ‘previous entries’ on the home page, it leads to page 2, and a 404 page not found.

I’ve searched every forum on how to fix this and haven’t found a solution. I’ve changed the htaccess file, I’ve changed and saved and changed back again the permalinks. I had no plugins installed or activated when I noticed this problem. I have now installed WP Page Navi, which has made pretty buttons, but still leads to the 404 page. I can’t find a solution anywhere.

The theme allows you to have a selection of book covers on the home page, I’m using this as a non-static page, so theoretically clicking on page 2 or next page, should show the older book posts (as opposed to blog posts or pages), but I get the 404.

I’m thinking the problem is in the index somewhere, I can’t program, so if there is some line of code that needs altering here that would fix the problem, I’d be most grateful for suggestions : )

<?php get_header(); ?>
<?php
if(get_option('uree_home') == "blog") { ?>
<?php include (TEMPLATEPATH . '/lib/blog-home.php'); ?>
<?php } else { ?>

<div id="home-content" class="clearfix">
<ul id="shelf">

	<?php
		$home_count = get_option('uree_home_count');
		$temp = $wp_query;
		$wp_query= null;
		$wp_query = new WP_Query();
		$wp_query->query('posts_per_page='.$home_count.'&post_type=book'.'&paged='.$paged);
	?>
	<?php while ($wp_query->have_posts()) : $wp_query->the_post(); ?>
	<li class="box" id="post-<?php the_ID(); ?>">
		<div class="postim" id="post-<?php the_ID(); ?>">
			<div class="btitle">
				<h2><a>" rel="bookmark" title="Permanent Link to <?php the_title(); ?>"><?php the_title(); ?></a></h2>
			</div>
			<span class="inwriter"><?php $writer=get_post_meta($post->ID, 'w2f_author', true); echo $writer; ?></span>
			<a>"><img class="bookcover" src="<?php bloginfo('stylesheet_directory'); ?>/timthumb.php?src=<?php get_image_url(); ?>&h=190&w=150&zc=1" alt=""/></a>
		</div>

	<?php endwhile; ?>
	<div class="clear"></div>
	<?php getpagenavi(); ?>
	<?php $wp_query = null; $wp_query = $temp;?>

</div>
<?php get_footer(); ?>
<?php } ?>