This is an old version of this answer!
Return to the current answerTry changing your query post to this:
Lew
$paged = (get_query_var('paged')) ? get_query_var('paged') : 1;
query_posts('cat=' . $exclude .'paged=' . $paged);
Lew
Lew Ayotte | 04/23/10 at 12:06am