adding read more tag?

Hi everyone, I am using the iTheme-1-1 theme locally and am having trouble triying to show jus an excerpt of the post with a read more tag. I have located the index file and found <?php the_content(‘Continue reading »’); ?>

but cant seem to work out how to amend this so I just get the excerpt. heres the code:

<?php get_header(); ?>

      <div id="content">

	<?php if (have_posts()) : ?>

		<?php while (have_posts()) : the_post(); ?>

        <div class="post" id="post-<?php the_ID(); ?>">
		  <div class="date"><span><?php the_time('M') ?></span> <?php the_time('d') ?></div>
		  <div class="title">
          <h2><a href="<?php the_permalink() ?>" rel="bookmark" title="Permanent Link to <?php the_title(); ?>"><?php the_title(); ?></a></h2>
          <div class="postdata"><span class="category"><?php the_category(', ') ?></span> <!-- <span class="comments"><?php comments_popup_link('No Comments »', '1 Comment »', '% Comments »'); ?></span> --></div>
		  </div>
          <div class="entry">

          <?php the_excerpt(); ?>
	<?php the_content('Continue reading &raquo;'); ?>
          </div><!--/entry -->
        </div><!--/post -->

		<?php endwhile; ?>

        <div class="page-nav"> <span class="previous-entries"><?php next_posts_link('Previous Entries') ?></span> <span class="next-entries"><?php previous_posts_link('Next Entries') ?></span></div><!-- /page nav -->

	<?php else : ?>

		<h2>Not Found</h2>
		<p>Sorry, but you are looking for something that isn't here.</p>

	<?php endif; ?>

      </div><!--/content -->

      <div id="footer"><a href="http://www.ndesign-studio.com/resources/wp-themes/">WP Theme</a> & <a href="http://www.ndesign-studio.com/stock-icons/">Icons</a> by <a href="http://www.ndesign-studio.com">N.Design Studio</a></div>
    </div><!--/left-col -->

<?php get_sidebar(); ?>

<?php get_footer(); ?>

is there something else I have to change in this code, and also the backend of WordPress?

I have looked at this link but cant seem to figure out how this works..

Thanks..

lister