If you go to www.mjd.co.nz/portfolio.php and click on the pagination at the bottom - it doesn't show the next news post - instead it shows news from a different category. This is the include code I use on portfolio.php:
Access: Admin
Total Posts: 1395
Joined: 2006-05-19
Not really a bug, more of a limitation of using friendly ULRs and having different pages showing different categories. The only way around this would be to disable friendly URLs.