Hi Emad,
The idea for the Latest Item view is to set how many items froma category or user you wish to display.If you want to display 20, it will display 20 in one page. If you want only 10, then you will need to change the menu parameters.
Alternativley, you could you a Category menu, as category view has pagination built in.
What you asking would require modification to core files to add in a pagination/item qty per page setting.
Sorry its not the answer you want.
SimonK2 Support