Wordpress - No Second Page In 'news' Category ??

I really don't get this problem - on my blog, the news category has extended over two pages due to the volume of posts I have added. The first page: http://www.hannahmontanazone.com/news loads just find and includes the 6 or 7 most recent posts in this category, however when I try to view the older posts in the category and click on the two, to get me to the second page: http://www.hannahmontanazone.com/news/page/2 an error comes up .

I've asked for this in the WP support forum and got no reply .

What can the problem here be and how could I fix it ??

 

It's here:
http://www.hannahmontanazone.com/category/news/page/2
Modify your navigation bar

 

Oh, I see!

But thing is that I use a category base killer plugin which removes the word 'category' from the URL, for SEO purposes. Hmm, I don't even know how to modify that URL because it's added automatically. What do you think I should do ?

 

I would simply stop using this plugin - it seems that it doesn't work correctly when it comes to multiple pages.
Other solution - increase the number of posts per page so they all fit on one page, but this one is pretty lame, isn't it?