Arcade theme – posts not showing

I have the basic version of Arcade for a client site: http://www.levi-synergy.com/wp and have two problems with the posts:

1. If I click on the ‘read more’ link on the homepage posts, it shows only the text of the post on the new page, not the image / media.
2. In your demo of the theme (http://demos.bavotasan.com/arcade/) you have a static front page (which I like and want) and also a blog page where all posts go. I have not been able to make this happen if I choose the static option.. But would like it as it is in the demo (so posts on homepage and on the blog page automatically).

Any help would be appreciated!
Rosa