Wordpress Blog Page

Hi,

I'm currently working on my portfolio site on www.ben-gibson.co.uk

I'm stuck creating working posts pages for my blog. In short what i want is to display 3 blog posts per page. I currently have the next and previous page buttons working and redirecting to "/page2" ect but they just display the same blog posts on each page .

I have seen similar problems and the suggest solution was to set the homepage as static in your WordPress dashboard and you blog page as the page that will display you blog. However my homepage is not static as it shows recent blog posts at the bottom.

I have seen a number of WordPress sites where the home page displays recent blog posts (not static) and a blog page which has posts slit into pages. I'm just not sure how its done.

My code for the blog is

                <?php query_posts('category_name=blog&posts_per_page=3'); ?>
                       <?php while (have_posts()) : the_post(); ?>


       <div id="blog-wrap">    
       <div class="blog-post">
           <div class="blog-image">            
               <a href="#">                            
                   <?php the_post_thumbnail(); ?>
               </a>
           </div>
           <div class="blog-text">
               <h3 class="blog-post-title"><a href="<?php the_permalink(); ?>"><?php the_title(); ?></a></h3>
               <span class="blog-details"><?php the_time('F j Y'); ?></span>
               <span class="description post-meta-separator">/</span>
               <span class="blog-details"><?php comments_number('0 comments','1 comment','% comments'); ?></p></span>
               <div class="blog-info-description">
                                       <?php the_excerpt(); ?>
                               </div>                          
           </div>
       </div>
    </div>

       <?php endwhile; ?>

               <div id="prev-page">
               <div class="button">
                  <?php previous_posts_link('Previous'); ?>                
               </div>
       </div>

       <div id="next-page">
               <div class="button">
                    <?php next_posts_link('Next'); ?>              
               </div>
       </div>

Thanks for any help