Im using a slightly dated version of wp-alpha 1.2, hopefully this has changed.
On my subdirectory index page, I've got a category restriction.
/* Don't remove these lines. */
$cat = "3";
$blog = 1;
When this gets run, I get all the posts in category '3', but my Limit per page setting (from Admin/Options) is completely ignored. I get all 140 of my category posts instead of the first 10 posts in that category.
I'd be nice if you'd be able to specify to use a certain category of posts, and still specify a posting display limit so I dont get an entire year of posts showing on the first page.