itheme 1.1 – static home and blog section problems

Hi everyone, hope someone could help. I have just started to learn wp.

I have installed the iTheme 1.1 and have tried to change the home page which was the blog entries. Moved these to a blog page and created a new home page (current home page did not show up in the appearance/pages tab.) Changed the settings/readings to mirror my site, but now I have two home pages.

I cant seem to find out how to delete the original home, which must have been hardcoded into the theme. I’m unsure how to strip this out so I can control what gets displayed on the home/index page and blog page.

also, I have noticed I get a rogue
< ul > appear below the Nav bar as if its a subnav which doesn’t contain any child elements when I create a new page, this shows a grey box under the nav bar. But the blog page with dummy content doesn’t have this?

could anyone help..

http://www.twistedjunkie.eclipse.co.uk/images/strange_nav.png

<div id="header"><br />
      <h1><a>"><?php bloginfo('name'); ?></a></h1><br />
      <div class="description"><?php bloginfo('description'); ?></div><br />
      <?php include (TEMPLATEPATH . '/searchform.php'); ?><br />
    </div><!-- /header --></p>
<p>    <div id="left-col"><br />
      <div id="nav"></p>
<ul>
          <li class="page_item <?php if ( is_home() ) { ?>current_page_item<?php } ?>"><a>/" title="Home">Home</a><br />
		  <?php wp_list_pages('sort_column=menu_order&depth=1&title_li=');?>
        </ul>
<p>      </div><!-- /nav --></p>
<p>    <?php /* Menu for subpages of current page (thanks to K2 theme for this code) */<br />
    global $notfound;<br />
    if (is_page() and ($notfound != '1')) {<br />
        $current_page = $post->ID;<br />
        while($current_page) {<br />
            $page_query = $wpdb->get_row("SELECT ID, post_title, post_status, post_parent FROM $wpdb->posts WHERE ID = '$current_page'");<br />
            $current_page = $page_query->post_parent;<br />
        }<br />
        $parent_id = $page_query->ID;<br />
        $parent_title = $page_query->post_title;</p>
<p>        // if ($wpdb->get_results("SELECT * FROM $wpdb->posts WHERE post_parent = '$parent_id' AND post_status != 'attachment'")) {<br />
        if ($wpdb->get_results("SELECT * FROM $wpdb->posts WHERE post_parent = '$parent_id' AND post_type != 'attachment'")) {<br />
    ?></p>
<p>    <div id="subnav"></p>
<ul>
        <?php wp_list_pages('sort_column=menu_order&depth=1&title_li=&child_of='. $parent_id); ?>
      </ul>
<p>    </div><!-- /sub nav --><br />
    <?php } } ?><br />