yuriyWP on "WP-PageNavi Error in last pages and extra pages?"

ok sure this is my function.php page

I have modified the loop a little in the index.php file to something like this
AND its not showing me no error but it does gives me 2 extra pages.???
Thanks for help.

<?php $paged = (get_query_var('paged')) ? get_query_var('paged') : 1; query_posts('posts_per_page=10&paged=' . $paged);?>
		<?php if (have_posts()) : while (have_posts()) : the_post(); ?>

<!-- all my code for the post -->

<?php endwhile; ?>
<?php else : ?>
<h2>Not Found</h2>
<?php endif; ?>

<?php
//this is my function.php file

function my_post_queries( $query ) {
  // not an admin page and it is the main query
  if (!is_admin() && $query->is_main_query()){
    if(is_home()){
      $query->set('posts_per_page', 1);
    }
  }
}
add_action( 'pre_get_posts', 'my_post_queries' );

// Thumbnail sizes
add_image_size( 'bones-thumb-600', 600, 150, true );
add_image_size( 'bones-thumb-300', 300, 100, true );

// Sidebars & Widgetizes Areas
function bones_register_sidebars() {
    register_sidebar(array(
    	'id' => 'sidebar1',
    	'name' => 'Sidebar 1',
    	'description' => 'The first (primary) sidebar.',
    	'before_widget' => '<div id="%1$s" class="widget %2$s">',
    	'after_widget' => '</div>',
    	'before_title' => '<h4 class="widgettitle">',
    	'after_title' => '</h4>',
    ));
	if (function_exists('register_nav_menus')) {

	register_nav_menus(
		array(
			'main_nav' => 'yuriyBlog_menu_1'
		)
	);
}
}

// adding sidebars to WordPress
add_action( 'widgets_init', 'bones_register_sidebars' );

// Comment Layout
function bones_comments($comment, $args, $depth) {
   $GLOBALS['comment'] = $comment; ?>
	<li <?php comment_class(); ?>>
		<article id="comment-<?php comment_ID(); ?>">
			<header class="comment-author vcard">
				<?php echo get_avatar($comment,$size='32',$default='<path_to_url>' ); ?>
				<?php printf(__('<cite class="fn">%s</cite>'), get_comment_author_link()) ?>
				<time><a href="<?php echo htmlspecialchars( get_comment_link( $comment->comment_ID ) ) ?>"><?php printf(__('%1$s'), get_comment_date(),  get_comment_time()) ?></a></time>
				<?php edit_comment_link(__('(Edit)'),'  ','') ?>
			</header>

			<?php if ($comment->comment_approved == '0') : ?>
       			<div class="help">
          			<p><?php _e('Your comment is awaiting moderation.') ?></p>
          		</div>

			<?php endif; ?>

			<section class="comment_content clear">
				<?php comment_text() ?>
			</section>

			<?php comment_reply_link(array_merge( $args, array('depth' => $depth, 'max_depth' => $args['max_depth']))) ?>

		</article>
    <!-- </li> is added by wordpress automatically -->
<?php
}

// Add support for Featured Images
if (function_exists('add_theme_support')) {
    add_theme_support('post-thumbnails');
	add_image_size('GeneralFuturedImage', 700, 315, true);
} 

?>