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Pair programming is a great way of increasing developer moral, productivity, skill, and product quality if it is done correctly. I have been lucky enough to have experienced pair or extreme programming for nearly a year, being paired up with several other developers over that time frame. I am practically a veteran given its very small adoption rate as of 6/8/2011 (I have heard estimates as high as 3% of Agile shops) and that those that have adopted it do so only part time on select projects. My experience tells me that the Wikipedia article on the subject is largely correct.
So, hopefully, I just misinterpreted what you said, but "To avoid confusion one pair will typically be the Navigator (observer) that is doing the primary directing of the Driver who is typing. Thus allowing the Navigator to focus on the task at hand without being distracted by the physical chores. " does not sound like pair programming to me.