Directory pagination issue - Pages not working

Hello,

The directory pagination is not working currently. When clicking "next", "last" or on any of the page numbers, it refreshes the original listings page.

http://theguruisu.com/listings/

I have been told that there is a conflict with the Fusion theme I am using because

"Your theme overrides the Wordpress setting. That page would be affected by the Fusion "Number of Posts displayed on Archive pages"

My question is how do I resolve this? What edits to the theme need to be done so that the directory is functional?

Thank you