static homepage and blog duplication

hello

my wordpress is at : http://www.mydomain.com/blog

I wanted to put welcome page so I followed directions given at : http://codex.wordpress.org/Giving_WordPress_Its_Own_Directory

and made homepage perfectly.

But my question is :

when I open : http://www.mydomain.com it is showing welcome homepage and when i click : http://www.mydomain.com/blog it is showing same page again.

to avoid that, some told me to make another page “blog” and set it as posts page. I did that. But what who directly open : http://www.mydomain.com/blog ? I don’t want redirection.

In simple words : I just want likt this : http://www.sunil.org.uk/

please help.