wpPaginate and list of posts

Last week I used the bulletin page navigation hack to split my categoryposts in 10 posts per page. Through the submission of a ?archive=monthly or ?archive=category (through the archivelist- or categorylistlinks) I managed to get the posts by month complete (so, NOT paginated) and the categories 10 per page. With the help of this code…

<?php if ($posts) : foreach ($posts as $post) : start_wp(); ?>
<li class="tienpostsli" id="linkto-post-<?php the_ID(); ?>">
"><?php the_title(); ?>

<?php endforeach; else: ?>

• <?php _e('no posts'); ?>

<?php endif; ?>

… I also got a list on the left with links/anchors to the present posts on that page.
Now I tried the wpPaginate plugin to do the same. Again through an if($archive==monthly) condition I managed to get the same result, except the above code doesn’t work.
Three questions (oh boy, I’ve still got a lot to learn…):
1. The code now produces a list with ALL links in that category, and not just ten. How can I correct that?
2. What IS the difference between the bulletin page navigation and the wpPaginate plugin? To me they appear to be exactly the same… Which one should I use?
3. I’m using the ‘if’ condition (and by adding vars to the archivelinks) because I don’t know of another way to change the way my index.php paginates the posts. And because I prefer to use just ONE index.php template, am I going the wright way in handling this? Or is there a better way to achieve this?