staic home page /blog page

i am trying to use the method below from the wordpress site :
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Creating a Static Front Page

Creating a virtual static front page does not require editing or coding of files or templates. Using the default configuration for a “static front page” in WordPress does not remove the sidebar or change the look of the entire site, just the content area.

To create the static front page, go to the WordPress Administration Panels.

Create two WordPress Pages from the “Add New Page” panel.
Title one as “Home” (or another name) as your “static” front page.
Set the “Home” template to the default template or any custom template. Title your template as something other than home.php as this could cause a conflict.
Add content you would like to see within the content area of the “Home” page.
Publish the Page.
If you will not be using WordPress’ blogging functionality, you can skip the second page; otherwise, title it “Blog” (or you could call it “News”, “Articles”, etc.). This page will be a place-holder for showing the Posts on your site.
Do not use a custom Page template for this page! home.php or index.php will be used to generate this page.
DO NOT add content to the Blog Page. Leave it blank. Any content here will be ignored — only the Title is used.
Publish the Page.
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i have created a page called home 1 and one for the blogs as Latest news (linked via the footer bar). however i now have a Home & Home 1 in the navigation bar . if i click on home 1 i get to the blogs but if i click on home i get page not found.
any suggestion as to how to correct this ??
the url is http://demo.ukinternet-services.com

Regards
webpaje