Excerpt in website…

Ok, I’m slightly experienced with wordpress, but still very much learning.

I’ve had success installing wordpress into the main page of more than one web site in the past. Right now, I’m working on a project for a client that wants a blog incorporated into the main page. The way I have the layout designed, I don’t want whole posts to show up on the front page, just an excerpt of the latest post.
So, I’ve gotten all that to work. I used the_excerpt(); with some modifications to the functions.php to get it to look like this:

http://www.yellowberri.com/extremeky/hcw/
(the excerpt appears about halfway down the page, under “Women’s Fitness Blog”)

What I want it to do is, when the user click on “read more…” after the excerpt, it will take them to a new page with either just the whole post, or maybe even all posts with the latest one at the top.
Currently, it just reloads the same page (without “older entries”/”newer entries” navigation)… also still only shows the excerpt.

Any solutions/input on this would be greatly appreciated.

(the client’s site is still very much under construction, by the way)