iand

I think your { are wrong again. Try:
<?php if /* this it not home */ (! is_home()) {
echo ('<li><h2>Latest posts</h2></li>'); c2c_get_recent_posts(5);
} ?>

The {} should contain all the conditional bit (I think 🙂 )

(Untested) neater might be:
<?php if /* this it not home */ (! is_home()) { ?>
<h2>Latest Posts</h2>
<ul>
<?php if (function_exists('c2c_get_recent_posts')) c2c_get_recent_posts(5); ?>
</ul>
<?php } ?>

So if you were displaying category X, your list would be the five most recent posts in category X?

To do that I think you will have to explore options using multiple loops:
http://codex.wordpress.org/The_Loop

Your page.php:
<?php get_header(); ?>
<div id="content" class="narrowcolumn">
<div class="post" id="post-<?php the_ID(); ?>">

default theme page.php:
<?php get_header(); ?>
<div id="content" class="narrowcolumn">
<?php if (have_posts()) : while (have_posts()) : the_post(); ?>
<div class="post" id="post-<?php the_ID(); ?>">

Looks like you are missing a line from yours. (or if you did mean to take it out, you will need to remove the <?php endwhile; endif; ?> line.

I think you have your ; and } backwards. (Se skippy’s code)
Try <?php if (! is_home()) { c2c_get_recent_posts(5); } ?>

Can you elaborate on your fix? Similar problems have come up before with this plugin.

Different layouts for different categories:
http://codex.wordpress.org/Template_Hierarchy

Looks like you deleted pm-config from your admin folder – presumably part of a plugin? Try either putting the files for that plugin back in the right places, or rename the plugin via ftp to disable it and get your blog running again.

You already have a neater url – try http://www.alittlepoison.com/archives/category/podcasts/feed/