For whatever reason the pagination isn't dealing with this code. I am tugging my hair out.

<div id="container" class="variable-sizes clearfix infinite-scrolling">

<?php
if ( get_query_var('paged') )
$paged = get_query_var('paged');
elseif ( get_query_var('page') ) 
$paged = get_query_var('page');
else 
$paged = 1;
$tax = 'filter';
$tax_terms = get_terms($tax);

//print_r($tax_terms);
if ($tax_terms) {
foreach ($tax_terms  as $tax_term) {

$args=array(
  'post_type' => $post_type,
  "$tax" => $tax_term->slug,
  'post_status' => 'publish',
  'posts_per_page' => 8
);  


$my_query = null;
$my_query = new WP_Query($args);
if( $my_query->have_posts() ) { ?>

  <?php while ($my_query->have_posts()) : $my_query->the_post(); ?>

    <?php 
    $fullsrc = wp_get_attachment_image_src( get_post_thumbnail_id($post->ID), 'large', false, '' );
    $videoLink = get_post_meta($post->ID, 'siiimple_video_link', true);
    $musicLink = get_post_meta($post->ID, 'siiimple_music_link', true);
    ?>


    <?php if ((!$videoLink) && (!$musicLink)) { ?>
    <!-- image -->
    <div class="boxy <?php echo $tax_term->slug ?> image">
      <div class="img-inner img-inner-<?php echo $tax_term->slug ?>">
        <a rel="prettyPhoto[mixed]" href="<?php echo $fullsrc[0]; ?>" title="<?php the_title(); ?>">
        <img src="<?php bloginfo('template_directory'); ?>/_framework/scripts/timthumb.php?src=<?php echo PostThumbURL(); ?>&amp;w=200&amp;h=170&amp;s=1&amp;zc=1" alt="" width="200" height="170"/>
        </a>
      </div>
      <h1 class="title"><a href="<?php the_permalink() ?>" title="<?php the_title_attribute(); ?>"><?php the_title(); ?></a></h1>
      <?php the_excerpt(''); ?>
    </div>

    <?php } elseif ( $musicLink ) { ?>

    <!-- music -->
    <div class="boxy <?php echo $tax_term->slug ?> music">
      <div class="img-inner-music img-inner-<?php echo $tax_term->slug ?>">
        <a rel="prettyPhoto[mixed]" href="<?php echo $musicLink; ?>" title="<?php the_title(); ?>">
        <img src="<?php bloginfo('template_directory'); ?>/_framework/scripts/timthumb.php?src=<?php echo PostThumbURL(); ?>&amp;w=200&amp;h=170&amp;s=1&amp;zc=1" alt="" width="200" height="170"/>
        </a>
      </div>
      <h1 class="title"><a href="<?php the_permalink() ?>" title="<?php the_title_attribute(); ?>"><?php the_title(); ?></a></h1>
      <?php the_excerpt(''); ?>
    </div>


  <?php } else { ?>


  <!-- video -->
    <div class="boxy <?php echo $tax_term->slug ?> video">
      <div class="img-inner-video img-inner-<?php echo $tax_term->slug ?>">
        <a rel="prettyPhoto[mixed]" href="<?php echo $videoLink; ?>" title="<?php the_title(); ?>">
        <img src="<?php bloginfo('template_directory'); ?>/_framework/scripts/timthumb.php?src=<?php echo PostThumbURL(); ?>&amp;w=200&amp;h=170&amp;s=1&amp;zc=1" alt="" width="200" height="170"/>
        </a>
      </div>
      <h1 class="title"><a href="<?php the_permalink() ?>" title="<?php the_title_attribute(); ?>"><?php the_title(); ?></a></h1>
      <?php the_excerpt(''); ?>    
    </div>

    <?php } ?>

    <?php endwhile; ?>


<? } } } ?>

<div id="page" class="main">

<?php if (function_exists("pagination")) {
pagination($additional_loop->max_num_pages);
} ?>

</div><!-- end main -->

Any suggestions?

Thanks