Ok...
I have chosen the static page option to display a static page and a separate posts page.
The posts page is working fine at http://www.designermonkey.co.uk/blog/
I have created a specific page template called homepage.php, created a page in wordpress using the slug 'homepage' and set the static page to point to this page. However, when I go to my site root at http://www.designermonkey.co.uk/ wordpress isn't using my specific template file. It is using page.php instead...
Does anyone know why? I've done everything that the codex says on how to make a page, but it won't work...
I'm so frustrated with it.