Used to use two loops, how do I do this now in 2.8?

This home.php template code works just ducky in older versions but doesn’t work in 2.8. How do I change the code to give me the same result in 2.8?

<?php if (have_posts()) : while (have_posts()) : the_post(); ?>
		<div class="post" id="post-<?php the_ID(); ?>">
		<h2><?php the_title(); ?></h2>
			<div class="entry">
				<?php the_content('<p class="serif">Read the rest of this page &raquo;</p>'); ?>

				<?php wp_link_pages(array('before' => '<p><strong>Pages:</strong> ', 'after' => '</p>', 'next_or_number' => 'number')); ?>

			</div><!-- end entry -->
		</div><!-- end post -->
		<?php endwhile; endif; ?>
	<?php edit_post_link('Edit this entry.', '<p>', '</p>'); ?>

		<h3 class="news">Most Recent News</h3>

<?php query_posts('posts_per_page=3'); ?>
  <?php if (have_posts()) : ?>
  <?php while (have_posts()) : the_post(); ?>
  <div class="post<?php sticky_class(); ?>">
    <h2 id="post-<?php the_ID(); ?>"><a href="<?php the_permalink() ?>" rel="bookmark" title="PermaLink to <?php the_title(); ?>">
      <?php the_title(); ?>
      </a></h2>
    <p class="small">
    <?php the_time('F jS, Y') ?> by
    <?php the_author() ?>
    </p>
    <div class="entry">
      <?php  the_excerpt('more . . .  &raquo;'); ?>
    </div>
    <p class="postmetadata">Posted in
      <?php the_category(', ') ?>
      <strong>|</strong>
      <?php edit_post_link('Edit','','<strong>|</strong>'); ?>
      <?php comments_popup_link('No Comments »', '1 Comment »', '% Comments »'); ?>
    </p>
    <!--
				<?php trackback_rdf(); ?>
				-->
  </div>
  <?php endwhile; ?>
  <?php else : ?>
  <h2 class="center">Not Found</h2>
  <p class="center">
    <?php _e("Sorry, but you are looking for something that isn't here."); ?>
  </p>
  <?php endif; ?>