batharoy

The second block aligns your large featured product with the others vertically.

.featured-products {
    margin-bottom: 0 !important;
}

ul.featured-products li:nth-child(4n), ul.featured-products li.fourth {
    margin-top: -19.2%;
}

Try using margin.
<p style="margin: 0 auto;"> IMAGES </p>

Or try setting the <p> in a <div>

<div style="text-align: center;">
    <p > IMAGES </p>
</div>

I was able to piece something together using codex examples. Gives a title link, featured image and post excerpt in an un-ordered list.

<ul>
	<?php $args = array( 'posts_per_page' => 5);
	$myposts = get_posts( $args );
		foreach ( $myposts as $post ) : setup_postdata( $post ); ?>
	<li>
		<h3><a href="<?php the_permalink(); ?>"><?php the_title(); ?></a></h3>
		<p><?php $thumbnails = get_posts();
			foreach ($thumbnails as $thumbnail) {
				if ( has_post_thumbnail($thumbnail->ID)) {
					echo get_the_post_thumbnail($thumbnail->ID, 'thumbnail');
				}
			}
		?></p>
		<p><?php the_excerpt(); ?> </p>
	</li>
<?php endforeach;
wp_reset_postdata();?>
</ul>

The theme is based on a 940px wide 16 column system. You would need to convert the base grid css elements to a percentage based system most likely. Also the offset grids as-well.

I changed the padding as you can see but it didn’t fix the problem

What exactly is the problem? Do you mean the mis-alignment of the title and search icon?

Actually we can’t see because you have the coming soon page active.

Makes it smaller and centers it
Can be added to Theme Options > Custom Codes > Header Section

.slider {
    max-width: 900px;
    margin: 0 auto;
}

I’m surprised this theme passed inspection with those kind of instructions. You should never edit a themes php files unless your using a child-theme.
Don;t actually edit that file, you will need to create a child-theme.