Semi Monthly Timesheet, need help with formulas

I am hoping someone out there can make heads or tails of my problem.

Here is the scenario and the outcome. Our accounting department wanted an Excel timesheet created that would be Sunday thru Saturday. They also wanted it where the "employee" could put in the pay period start date and have the timesheet correctly display the dates and days on the sheet. I thought I had it correctly but after testing it through 2009 I ran into a problem. I am using the forumla =S3-WEEKDAY(S3,2) for the first day of the payweek to show (Sunday). The rest follow by using =IF(E8=0,"",E8+1). S3 is my date input field. The E8 changes from each cell to the next to reference the one to the side of it.

Now the problem I have is if I put in any date where the 1st falls on a Sunday it will add one full week prior to the week starting.

Please look at the attached worksheet and try the following dats.
12/01/2008
01/01/2009
02/01/2009

Pay attention to the first Sunday listed and what happends when you go to 02/01/2009.

Thanks in advance for anyones help. I am sure it's just something I am not catching. I don't claim to be an expert in excel but this can't be that hard. I think I have been looking at it for too long now.

Ron,

Yes, that worked perfectly! Thats why your an MVP! I am guessing that the way I was using the =S3-WEEKDAY(S3,2) I was forcing it to list Sunday as the first day and by leaving it null the default of Saturday as you indicated plus the 1 allowed it to not lock itself up. I can't tell you how long I searched online trying to find more info on the WEEKDAY functions.

Also the E7 worked nicely as well.

Thank you again for all your help.

Now I am off to figure how to calculate overtime for this sheet based on California's over 8hrs and over 40hrs laws.

Wish me luck!

Chris