Custom post Query and WordPress Post Query Clash

Your code:

$the_query = new WP_Query( array( 
                          'posts_per_page' =>'2',
                          'paged' => $paged
                          ));

Replace With this:

global $wp_query;
$paged = (get_query_var('paged')) ? get_query_var('paged') : 1;
$args = array_merge( $wp_query->query,  array( 'posts_per_page' =>'2','paged' => $paged ) );
query_posts( $args );

NOTE: This code is not tested so first backup your page.

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