i have the category "movies" and my permalink structure is set to /%category%/%postname%/ so I have have URLs like site.com/movies/post-goes-here
I used Custom Post Type UI to setup the post type with these settings: http://d.pr/i/7Fuf
When I click on Older posts that were added to the category "movies" i get a 404 error.. any idea whats going on?