Heya - I'm confused about the Template Hierarchy and I'm not having any luck reviewing the codex to resolve the matter.
Basically, I understand that single.php displays a unique layout for pages that are showing a SINGLE post. I understand if that isn't there than it will use index.php. I also understand that in the Settings -> Reading section I need to select a page to be my "Posts Page" where all of my articles will display.
Where I'm confused is after I have defined my "Posts Page", it's still utilizing index.php, when I need it to access a different template (but I'm not sure which one) SO I CAN DISPLAY a few RECENT POSTS AND also the CATEGORIES. Help!