Permalink issue with Posts page

Forgive me, but I have searched and can’t find a solution. My development site is dev.ridgetop.org. I have a static page as my front page. The only way I can get my blog page to not give me a 404 is to use the default permalink setting. I have tried all of the other common settings with no luck. I want to be able to use the /%postname%/ because I like the fact that the page name will be the title of the page being accessed.

Any help is appreciated.