Published Posts do not show up on my blog page

Hi everyone!
I set up a website with the “ultra” theme. I use a static front page, and I want my posts to show up on the page I entered as the “Posts Page” at the “Reading Settings” page. I have published 2 test posts:
http://www.hlhlinguistics.ca/test-1/
http://www.hlhlinguistics.ca/test-2-2/
As you can see they display fine, but if you head to
http://www.hlhlinguistics.ca/blog/
which is the page I selected for my posts…nothing!

I have of course tried to troubleshoot this using Google but unfortunately with no success. I’ve tried the following:
– Using a different template for the blog page (default template for static pages, blog for the blog page).
– Checking for a directory called blog on my server…there was none.
– Taking the section that starts with “<?php if (have_posts())”
and ends with “<?php endif; ?>” from the page.php file to replace the same section in both my index.php and page-blog.php (since that’s the template that page is now set to use.

I will post the content of both these files below in case it helps:

page.php

[ Moderator Note: Please post code or markup snippets between backticks or use the code button. Not the blockquote. ]

<?php
// get theme panel options
global $options;
foreach ($options as $value) {
if (get_option( $value['id'] ) === FALSE) { $$value['id'] = $value['std']; } else { $$value['id'] = get_option( $value['id'] ); }
}
?>
<?php get_header(); ?>
<div id="main">
	<div id="post">
			<?php if (have_posts()) : while (have_posts()) : the_post(); ?>
			<h1><?php the_title(); ?></h1>
				<?php the_content(); ?>

	</div><!-- /post -->
		<?php endwhile;?>
		<?php endif; ?>
        </div><!-- /main -->
<?php get_sidebar(); ?>
<?php get_footer(); ?>

page-blog.php

<?php
global $options;
foreach ($options as $value) {
if (get_option( $value['id'] ) === FALSE) { $$value['id'] = $value['std']; } else { $$value['id'] = get_option( $value['id'] ); }
}
?>
<?php
/*
Template Name: Blog
*/
?>
<?php get_header(); ?>
<div id="main">
<div id="blog-description">
<?php if (have_posts()) : while (have_posts()) : the_post(); ?>
			<h1><?php the_title(); ?></h1>
				<?php the_content(); ?>

	</div><!-- /post -->
		<?php endwhile;?>
		<?php endif; ?>
</div><!-- /blog-description -->
		<?php query_posts( array( 'paged'=>$paged)); ?>
    	<?php if (have_posts()) : ?>
    	<?php while (have_posts()) : the_post(); ?>
		<div class="entry">
            	<?php if ( has_post_thumbnail() ) {  ?>
                    <div class="entry-featured-image">
                        <a>" title="<?php the_title(); ?>"><?php the_post_thumbnail('blog-image'); ?></a>
                    </div><!-- /entry-featured-image -->
					<?php } ?>
            <h2 class="entry-title"><a>" title="<?php the_title(); ?>"><?php the_title(); ?></a></h2>
            <?php if ($xs_disable_entry_meta == "true") { ?>
			<?php } else { ?>
            <div class="entry-meta">
            	Posted on <?php the_time('F jS, Y') ?> | <?php comments_popup_link('0 Comments »', '1 Comment »', '% Comments »'); ?>
            </div><!-- /entry-meta -->
            <?php } ?>
		<?php the_excerpt(''); ?>
		</div><!-- /entry -->
<?php endwhile; ?>
<?php endif; ?>
<?php
//Pagination
if (function_exists("pagination")) { pagination($additional_loop->max_num_pages); } ?>
</div><!-- /main -->
<?php get_sidebar(); ?>
<?php get_footer(); ?>

I have been trying to fix this for the past couple of hours and frankly I’m a bit lost now. Any help is much appreciated, thank you very much in advance!