I just installed this, so I thought I'd give you the settings that came as a preset and see if it helps.
The static page is set to "home". My blog shows up as a separate post type (not in the menu, but on the home page between the projects and clients). To see what I mean, my page is here.
As for the menu, I only have "home" and one other page. I didn't try to import my old blog as I wanted the layout and post structure to be completely different. (I say this because I tried to do this with another type of theme, and made the front page show up as the blog rather than the static page.)
I hope this helps!