Paginate posts in WordPress Theme

Alright, I’ve been staring at this for nearly an hour now and can’t get it to work. I’m using WordPress and I have 12 posts in the system. In the admin, I set it to display 5 posts per page. In my theme, I am trying to display pagination (prev,1,2,3,4,next) at the bottom. I found the paginate_links() function on the WordPress guides and it doesn’t print anything out… Any help is appreciated:

<?php get_header(); ?>
<div class="middle-container">
    <div class="middle">
        <div class="column main">
            <div class="latest">
            <?php
            $i = 0;
            if (have_posts()):
                while (have_posts() && $i < 1):
                    the_post();
                    ?>
                    <div class="image"><a href="<?php the_permalink() ?>" title="Permanent Link to <?php the_title_attribute(); ?>"><?php the_post_thumbnail(); ?></a>
                    </div>
                    <div class="content">
                    <h1><a href="<?php the_permalink() ?>" title="Permanent Link to <?php the_title_attribute(); ?>"><?php the_title(); ?></a></h1>
                    <span class="date"><?php the_time('F jS, Y') ?></span>
                    <?php
                    the_excerpt();
                    ?>
                    </div>
                    <?php
                    $i++;
                endwhile;
            endif;
            ?>
            </div>
            <ul class="posts">
            <?php
            $i = 0;
            if (have_posts()):
                while (have_posts() && $i < 4):
                    the_post();
                    ?>
                    <li>
                    <h2><a href="<?php the_permalink() ?>" title="Permanent Link to <?php the_title_attribute(); ?>"><?php the_title(); ?></a></h2>
                    <span class="date"><?php the_time('F jS, Y') ?></span>
                    <?php
                    the_excerpt();
                    ?>
                    </li>
                    <?php
                    $i++;
                endwhile;
            endif;
            ?>
            </ul>
            <?php
            echo paginate_links();
            ?>
        </div>
        <div class="column sidebar"></div>
    </div>
</div>
<?php get_footer(); ?>

A little more background on this: The first while loop in the code grabs the first post in the list and displays it in its own special block. The second while loop grabs the remaining 4 posts. Both of these while loops work perfectly fine. The pagination just simply isn’t printing out.