diff --git a/index.php b/index.php
index 037f13bb5c0b..b71cc4b932bc 100644
--- a/index.php
+++ b/index.php
@@ -59,6 +59,8 @@
 <?php endforeach; else: ?>
 <p><?php _e('Sorry, no posts matched your criteria.'); ?></p>
 <?php endif; ?>
+
+<?php posts_nav_link(' &#8212; ', __('&laquo; Previous Page'), __('Next Page &raquo;')); ?>
 </div>
 
 
diff --git a/wp-admin/install.php b/wp-admin/install.php
index b30c12cdd63f..a8577567cc7c 100644
--- a/wp-admin/install.php
+++ b/wp-admin/install.php
@@ -457,7 +457,7 @@
 "INSERT INTO $wpdb->options (option_id, option_name, option_type, option_value, option_description, option_admin_level, option_width) VALUES(46,'use_phoneemail', 2, '0', 'some mobile phone email services will send identical subject & content on the same line if you use such a service, set use_phoneemail to true, and indicate a separator string', 8, 20)",
 // original options from options page
 "INSERT INTO $wpdb->options (option_id, option_name, option_type, option_value, option_description, option_admin_level, option_width) VALUES(48,'posts_per_page', 1, '20','How many posts/days to show on the index page.', 4, 20)",
-"INSERT INTO $wpdb->options (option_id, option_name, option_type, option_value, option_description, option_admin_level, option_width) VALUES(49,'what_to_show', 5, 'posts','Posts, days, or posts paged', 4, 20)",
+"INSERT INTO $wpdb->options (option_id, option_name, option_type, option_value, option_description, option_admin_level, option_width) VALUES(49,'what_to_show', 5, 'posts','Posts or days', 4, 20)",
 "INSERT INTO $wpdb->options (option_id, option_name, option_type, option_value, option_description, option_admin_level, option_width) VALUES(50,'archive_mode', 5, 'monthly','Which \'unit\' to use for archives.', 4, 20)",
 "INSERT INTO $wpdb->options (option_id, option_name, option_type, option_value, option_description, option_admin_level, option_width) VALUES(51,'time_difference', 6, '0', 'if you\'re not on the timezone of your server', 4, 20)",
 "INSERT INTO $wpdb->options (option_id, option_name, option_type, option_value, option_description, option_admin_level, option_width) VALUES(52,'date_format', 3, 'n/j/Y', 'see note for format characters', 4, 20)",
@@ -532,7 +532,6 @@
 // select data for what to show
 "INSERT INTO $wpdb->optionvalues (option_id, optionvalue, optionvalue_desc, optionvalue_max, optionvalue_min, optionvalue_seq) VALUES (49, 'days',  'days',        null,null,1)",
 "INSERT INTO $wpdb->optionvalues (option_id, optionvalue, optionvalue_desc, optionvalue_max, optionvalue_min, optionvalue_seq) VALUES (49, 'posts', 'posts',       null,null,2)",
-"INSERT INTO $wpdb->optionvalues (option_id, optionvalue, optionvalue_desc, optionvalue_max, optionvalue_min, optionvalue_seq) VALUES (49, 'paged', 'posts paged', null,null,3)",
 // select data for archive mode
 "INSERT INTO $wpdb->optionvalues (option_id, optionvalue, optionvalue_desc, optionvalue_max, optionvalue_min, optionvalue_seq) VALUES (50, 'daily',     'daily',       null,null,1)",
 "INSERT INTO $wpdb->optionvalues (option_id, optionvalue, optionvalue_desc, optionvalue_max, optionvalue_min, optionvalue_seq) VALUES (50, 'weekly',    'weekly',      null,null,2)",
diff --git a/wp-admin/options-reading.php b/wp-admin/options-reading.php
index 2bf5f65603b9..5cf5418fbdd2 100644
--- a/wp-admin/options-reading.php
+++ b/wp-admin/options-reading.php
@@ -56,7 +56,6 @@ function add_magic_quotes($array) {
 					<select name="what_to_show" id="what_to_show" > 
                                                 <option value="days" <?php selected('days', get_settings('what_to_show')); ?>><?php _e('days') ?></option> 
 						<option value="posts" <?php selected('posts', get_settings('what_to_show')); ?>><?php _e('posts') ?></option> 
-						<option value="paged" <?php selected('paged', get_settings('what_to_show')); ?>><?php _e('posts paged') ?></option> 
 					</select> </td> 
 			</tr> 
 		</table> 
diff --git a/wp-admin/upgrade-functions.php b/wp-admin/upgrade-functions.php
index d8e057b7d163..6cf619a9d01c 100644
--- a/wp-admin/upgrade-functions.php
+++ b/wp-admin/upgrade-functions.php
@@ -255,7 +255,7 @@ function upgrade_072() {
 
 		// original options from options page
 		"48" => "INSERT INTO $wpdb->options (option_id, option_name, option_type, option_value, option_description, option_admin_level, option_width) VALUES (48,'posts_per_page', 1, '20','How many posts/days to show on the index page.', 4, 20)",
-		"49" => "INSERT INTO $wpdb->options (option_id, option_name, option_type, option_value, option_description, option_admin_level, option_width) VALUES (49,'what_to_show', 5, 'posts','Posts, days, or posts paged', 4, 20)",
+		"49" => "INSERT INTO $wpdb->options (option_id, option_name, option_type, option_value, option_description, option_admin_level, option_width) VALUES (49,'what_to_show', 5, 'posts','Posts or days', 4, 20)",
 		"50" => "INSERT INTO $wpdb->options (option_id, option_name, option_type, option_value, option_description, option_admin_level, option_width) VALUES (50,'archive_mode', 5, 'monthly','Which \'unit\' to use for archives.', 4, 20)",
 		"51" => "INSERT INTO $wpdb->options (option_id, option_name, option_type, option_value, option_description, option_admin_level, option_width) VALUES (51,'time_difference', 6, '0', 'if you\'re not on the timezone of your server', 4, 20)",
 		"52" => "INSERT INTO $wpdb->options (option_id, option_name, option_type, option_value, option_description, option_admin_level, option_width) VALUES (52,'date_format', 3, 'n/j/Y', 'see note for format characters', 4, 20)",
@@ -422,7 +422,6 @@ function upgrade_072() {
 		// select data for what to show
 		"INSERT INTO $wpdb->optionvalues (option_id, optionvalue, optionvalue_desc, optionvalue_max, optionvalue_min, optionvalue_seq) VALUES (49, 'days',  'days',        null,null,1)",
 		"INSERT INTO $wpdb->optionvalues (option_id, optionvalue, optionvalue_desc, optionvalue_max, optionvalue_min, optionvalue_seq) VALUES (49, 'posts', 'posts',       null,null,2)",
-		"INSERT INTO $wpdb->optionvalues (option_id, optionvalue, optionvalue_desc, optionvalue_max, optionvalue_min, optionvalue_seq) VALUES (49, 'paged', 'posts paged', null,null,3)",
 		// select data for archive mode
 		"INSERT INTO $wpdb->optionvalues (option_id, optionvalue, optionvalue_desc, optionvalue_max, optionvalue_min, optionvalue_seq) VALUES (50, 'daily',     'daily',       null,null,1)",
 		"INSERT INTO $wpdb->optionvalues (option_id, optionvalue, optionvalue_desc, optionvalue_max, optionvalue_min, optionvalue_seq) VALUES (50, 'weekly',    'weekly',      null,null,2)",
@@ -920,6 +919,10 @@ function upgrade_130() {
 		}
 	}
 
+    // The "paged" option for what_to_show is no more.
+    if ($wpdb->get_var("SELECT option_value FROM $wpdb->options WHERE option_name = 'what_to_show'") == 'paged') {
+        $wpdb->query("UPDATE $wpdb->options SET option_value = 'posts' WHERE option_name = 'what_to_show'");
+    }
 }
 
 ?>
\ No newline at end of file
diff --git a/wp-includes/functions.php b/wp-includes/functions.php
index 02214ea5a1dc..268233180a1a 100644
--- a/wp-includes/functions.php
+++ b/wp-includes/functions.php
@@ -1669,7 +1669,7 @@ function query_posts($query) {
     }
 
     if ( !empty($postend) && ($postend > $poststart) && (!$m) && empty($monthnum) && empty($year) && empty($day) &&(!$w) && (!$whichcat) && (!$s) && (!$p)) {
-        if ($what_to_show == 'posts' || ($what_to_show == 'paged' && (!$paged))) {
+        if ($what_to_show == 'posts') {
             $poststart = intval($poststart);
             $postend = intval($postend);
             $limposts = $postend - $poststart;
@@ -1686,7 +1686,7 @@ function query_posts($query) {
             $where .= " AND post_date > '$otherdate' AND post_date < '$startdate'";
         }
     } else {
-        if (($what_to_show == 'paged') && (!$p) && (!$more)) {
+        if (($what_to_show == 'posts') && (! is_single()) && (!$more)) {
             if ($pagenow != 'post.php') {
                 $pgstrt = '';
                 if ($paged) {
diff --git a/wp-includes/template-functions-links.php b/wp-includes/template-functions-links.php
index 865f02155ba3..c9c11a66726c 100644
--- a/wp-includes/template-functions-links.php
+++ b/wp-includes/template-functions-links.php
@@ -348,10 +348,10 @@ function get_pagenum_link($pagenum = 1){
 }
 
 function next_posts($max_page = 0) { // original by cfactor at cooltux.org
-    global $p, $paged, $what_to_show, $pagenow;
+    global $paged, $pagenow;
     global $querystring_start, $querystring_equal, $querystring_separator;
 
-     if (empty($p) && ($what_to_show == 'paged')) {
+     if (! is_single()) {
          if (!$paged) $paged = 1;
          $nextpage = intval($paged) + 1;
          if (!$max_page || $max_page >= $nextpage) {
@@ -361,36 +361,34 @@ function next_posts($max_page = 0) { // original by cfactor at cooltux.org
 }
 
 function next_posts_link($label='Next Page &raquo;', $max_page=0) {
-    global $p, $paged, $result, $request, $posts_per_page, $what_to_show, $wpdb;
-    if ($what_to_show == 'paged') {
-        if (!$max_page) {
-            $nxt_request = $request;
-            //if the query includes a limit clause, call it again without that
-            //limit clause!
-            if ($pos = strpos(strtoupper($request), 'LIMIT')) {
-                $nxt_request = substr($request, 0, $pos);
-            }
-            $nxt_result = $wpdb->query($nxt_request);
-            $numposts = $wpdb->num_rows;
-            $max_page = ceil($numposts / $posts_per_page);
-        }
-        if (!$paged)
-            $paged = 1;
-        $nextpage = intval($paged) + 1;
-        if (empty($p) && (empty($paged) || $nextpage <= $max_page)) {
-            echo '<a href="';
-            next_posts($max_page);
-            echo '">'. preg_replace('/&([^#])(?![a-z]{1,8};)/', '&#038;$1', $label) .'</a>';
+    global $paged, $result, $request, $posts_per_page, $wpdb;
+    if (!$max_page) {
+        $nxt_request = $request;
+        //if the query includes a limit clause, call it again without that
+        //limit clause!
+        if ($pos = strpos(strtoupper($request), 'LIMIT')) {
+            $nxt_request = substr($request, 0, $pos);
         }
+        $nxt_result = $wpdb->query($nxt_request);
+        $numposts = $wpdb->num_rows;
+        $max_page = ceil($numposts / $posts_per_page);
+    }
+    if (!$paged)
+        $paged = 1;
+    $nextpage = intval($paged) + 1;
+    if ((! is_single()) && (empty($paged) || $nextpage <= $max_page)) {
+        echo '<a href="';
+        next_posts($max_page);
+        echo '">'. preg_replace('/&([^#])(?![a-z]{1,8};)/', '&#038;$1', $label) .'</a>';
     }
 }
 
 
 function previous_posts() { // original by cfactor at cooltux.org
-    global $_SERVER, $p, $paged, $what_to_show, $pagenow;
+    global $_SERVER, $paged, $pagenow;
     global $querystring_start, $querystring_equal, $querystring_separator;
 
-     if (empty($p) && ($what_to_show == 'paged')) {
+     if (! is_single()) {
          $nextpage = intval($paged) - 1;
          if ($nextpage < 1) $nextpage = 1;
          echo get_pagenum_link($nextpage);
@@ -398,8 +396,8 @@ function previous_posts() { // original by cfactor at cooltux.org
 }
 
 function previous_posts_link($label='&laquo; Previous Page') {
-    global $p, $paged, $what_to_show;
-    if (empty($p)  && ($paged > 1) && ($what_to_show == 'paged')) {
+    global $paged;
+    if ((! is_single())  && ($paged > 1) ) {
         echo '<a href="';
         previous_posts();
         echo '">'. preg_replace('/&([^#])(?![a-z]{1,8};)/', '&#038;$1', $label) .'</a>';
@@ -407,8 +405,8 @@ function previous_posts_link($label='&laquo; Previous Page') {
 }
 
 function posts_nav_link($sep=' &#8212; ', $prelabel='&laquo; Previous Page', $nxtlabel='Next Page &raquo;') {
-    global $p, $what_to_show, $request, $posts_per_page, $wpdb;
-    if (empty($p) && ($what_to_show == 'paged')) {
+    global $request, $posts_per_page, $wpdb;
+    if (! is_single()) {
         $nxt_request = $request;
         if ($pos = strpos(strtoupper($request), 'LIMIT')) {
             $nxt_request = substr($request, 0, $pos);