Permalink and post page slug conflict

[botzev]

I have strange problem. Recently i updated from 2.3.3 to 2.7.
On my blog i use permalink for posts "/blog/%postname%/".
My wordpress instalation is with static and post page.
The static page is "/" with slug "home".
The post page is "/blog" with slug "blog".
When i go to the /blog page and try to reach the older entries(/blog/page/2/) i am getting error 404. But on /page/2/ i am getting the result.

[botzev]

Resolved by ​http://barefootdevelopment.blogspot.com/2007/11/fix-for-wordpress-paging-problem.html

[mrmist]

More appropriate resolution.