WP-PageNavi Issues, Url changes but the posts remain the same?

The issue I am having is I have created a new blog page on its own page template page being called blog.php, I have pulled 5 posts into each page and the first page work great and link to the single posts that they are attached too.

When I try to add wp-pagenavi into my nav-below I run into an issue. What happens is I will click to go the next page and it changes the url, but the posts remain the same as before, when it should be switching them to the next set.

I don't know if you can use wp-pagenavi outside of index.php, but if anyone can let me know what I am doing wrong here and why I continue to get the same posts that would be awesome and greatly appreciated. I have one of my blogs on blog.php and that is the file I am trying to get to work. I have posted the code for it below.

 * Template Name: Blog Page  <?php query_posts("posts_per_page=8"); ?>
 get_header(); ?>

    <div id="content">
    <?php query_posts( array( 'post_type' => 'post', 'posts_per_page=5' ) ); ?>
    //THE LOOP.
    if( have_posts() ): 
        while( have_posts() ):
        the_post(); ?>

        <article id="post-1" <?php post_class( 'clearfix' ); ?>>
            <h2 class="entry-title"> <a href="<?php the_permalink(); ?>"> 
                <?php the_title(); ?> 
            <div class="postmeta"> 
                <span class="author"> Posted by: <?php the_author(); ?> </span> 
                <span class="date"> <?php the_date(); ?> </span> 
                <span class="num-comments"> 
            <?php comments_number('No comments yet', 'One comment', '% comments'); ?></span> 
                <span class="categories"> 
                    <?php the_category(); ?>                
                <span class="tags">
                    <?php the_tags(); ?>
            </div><!-- end postmeta --> 

            <?php if( has_post_thumbnail() ): ?>
            <div class="thumb">
                <?php the_post_thumbnail( 'thumbnail' ); ?>
            <?php endif; ?>           

            <div class="entry-content">
            if( is_single()  OR is_page() ):






        <?php comments_template(); ?>
         </article><!-- end post -->
      else: ?>
      <h2>Sorry, no posts found</h2>
      <?php endif; //END OF LOOP. ?>

        <div id="nav-below" class="pagination"> 
         <?php if( function_exists('wp_pagenavi') ): 

            <?php next_posts_link( '&larr; Older Posts' ); ?>
            <?php previous_posts_link( 'Newer Posts &rarr;' ); ?>

            <?php endif; ?>
        </div><!-- end #nav-below --> 
    </div><!-- end content -->

<?php get_footer(); ?>  


After <div id="content"> have this code:

<?php $paged = (get_query_var('paged')) ? get_query_var('paged') : 1; ?>
<?php query_posts( array( 'post_type' => 'post', 'posts_per_page=5', 'paged' => $paged ) ); ?>

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