Thanks for the advice...here's where I am in this process.
I tried method #2 before, but I tried again with your instructions. What happens when I create the Video template page is that it displays a blank Video Page and then highlights the category name I requested over in the category list, but displays no actual posts, just highlights the category name. That's where it is now. Did I paste it into the right spot on my page? I posted the query_posts code above this line:
<?php elseif (have_posts()) : ?>
Is that the right spot for it?
As for #1, I don't know if I understand it all completely. So, I go and copy and paste that into a file called front_page_cats.php ? Then where do I put that file? In the wp-plugins folder? I tried that, but it didn't show up as a plugin like a lot of plugins I have tried. My theme doesn't have an archive template, so should I make one based on the index page? (I am using a Theme called Freshy).
Any clarification or other ideas? (I KNOW we have to be close on this). Basically I want that Page link at the top to function like a category page from a large link up by the lage list instead of a category link on the side. (Trying to make this really user-friendly for less savvy relatives and friends to use as a site.)