Check this site out:
http://hugsformonsters.com/
As you can see his home page is his content rather than his actual blog.
He has a link that directs the visitor to his word press blog.
I've managed to do the same with mine.
Except I have 2 different word press installations on my website.
One under the root directory and one under public_html/blog
There has to be an easier way to do this..
Please Help.
I wasn't sure where to post this...
sorry.
http://codex.wordpress.org/Pages#Creating_Your_Own_Page_Templates
Create page templates in your theme folder to your liking - one for the static front and one for the posts/blog - then apply those templates to a new page for each, then set your front page and post page to land on those new pages at Settings->Reading.
I don't have advice for keeping separate installs in two dirs looking like one install than to suggest migrating the lot into one WP site or creating a Network multisite.