function wp_corenavi() {
  global $wp_query, $wp_rewrite;
  $pages = '';
  $max = $wp_query->max_num_pages;
  if (!$current = get_query_var('paged')) $current = 1;
  $a['base'] = str_replace(999999999, '%#%', get_pagenum_link(999999999));
  $a['total'] = $max;
  $a['current'] = $current;

  $total = 1; //1 - display the text "Page N of N", 0 - not display
  $a['mid_size'] = 5; //how many links to show on the left and right of the current
  $a['end_size'] = 1; //how many links to show in the beginning and end
  $a['prev_text'] = '« Previous'; //text of the "Previous page" link
  $a['next_text'] = 'Next »'; //text of the "Next page" link

  if ($max > 1) echo '<div class="navigation">';
  if ($total == 1 && $max > 1) $pages = '<span class="pages">Page ' . $current . ' of ' . $max . '</span>'."rn";
  echo $pages . paginate_links($a);
  if ($max > 1) echo '</div>';
}

<?php

get_header();

if ( have_posts() ) : ?>
        <div id="container">
            <div id="content" role="main">

                <?php query_posts( 'category_name=category&showposts=2'); ?>
                <?php while ( have_posts() ) : the_post(); ?>

                            <div>
                                <div>
                                    <div class="thumb">
                                      <?php the_post_thumbnail('thumbnail'); ?>
                                   </div>
                                    <h2 class="entry-title" style="text-align:center;"><a href="<?php the_permalink(); ?>" title="<?php printf( esc_attr__( 'Permalink to %s', 'twentyten' ), the_title_attribute( 'echo=0' ) ); ?>" rel="bookmark"><?php the_title(); ?></a></h2>
                                    <div class="the-excerpt">
                                        <?php echo content(15, __('(Read More)')); /* twentyten_posted_on(); */ ?>
                                    </div><!-- .entry-meta -->
                                </div>
                            </div>

                <?php endwhile; // end of the loop. ?>
                <br clear="all" />
                <?php if (function_exists('wp_corenavi')) wp_corenavi(); ?>
            </div><!-- #content -->
        </div><!-- #container -->
<?php endif; ?>

query_posts( 'category_name=category&showposts=2');

$page = get_query_var('paged');
$page = (!empty($page) ? $page : 1);
query_posts( 'category_name=category&showposts=2&paged='.$page);

<?php query_posts( 'category_name=category&showposts=2'); ?>

<?php
// Custom query args
$category_query_args = array(
    'category_name' => 'category'
    'posts_per_page' => 2
);
// Custom query
$category_query = new WP_Query( $category_query_args );

// Reset pagination
global $wp_query;
$temp = $wp_query;
$wp_query= null;
$wp_query = $category_query;

// Output the Loop
if ( $category_query->have_posts() ) :
?>
<div id="container">
    <div id="content" role="main">

while ( $category_query->have_posts() ) : $category_query->the_post();
?>
<div>
     <div>
        <div class="thumb">
            <?php the_post_thumbnail('thumbnail'); ?>
        </div>
        <h2 class="entry-title" style="text-align:center;"><a href="<?php the_permalink(); ?>" title="<?php printf( esc_attr__( 'Permalink to %s', 'twentyten' ), the_title_attribute( 'echo=0' ) ); ?>" rel="bookmark"><?php the_title(); ?></a></h2>
        <div class="the-excerpt">
             <?php echo content(15, __('(Read More)')); /* twentyten_posted_on(); */ ?>
        </div><!-- .entry-meta -->
    </div>
</div>
<?php
endwhile;

// Custom navigation
?>
<br clear="all" />
<?php if (function_exists('wp_corenavi')) wp_corenavi(); ?>

    </div><!-- #content -->
</div><!-- #container -->

<?php
endif;

// Reset query
$wp_query = null;
$wp_query = $temp;
wp_reset_query();
?>

global $query_string;
parse_str( $query_string, $my_query_array );
$paged = ( isset( $my_query_array['paged'] ) && !empty( $my_query_array['paged'] ) ) ? $my_query_array['paged'] : 1;
query_posts('post_type=post&posts_per_page=3&paged='.$paged);