I’d like to have the “blog” on a sub-page

I’d like to have my site behave this way:

example.com ->display the page entitled “home” (with the two most recent entries on it, and a branding template)
example.com/blog -> display the main page with The Loop, and my entire post library

When I set my homepage to “example.com/blog”, then all my URLs become “example.com/blog/about” instead of “example.com/about”

What’s the best way to set up what I want to do?

Thanks!