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By default the front page of your blog displays all published posts (not pages) in reverse chronological order, with the most recently published post on top. That is for the convenience of your returning visitors, who come to read your latest post, and who are not likely to be happy with being compelled to click through the same static page with the same blah, blah, blah on it every time they visit the blog looking for the latest post.

However, if you do not want all the posts to show on the front page, then you can create a static front page called for example “Welcome” for your site and a “Blog” page for posts. To do that create two pages first

re: custom menus
Please read this first Post vs. Page http://en.support.wordpress.com/post-vs-page/

(1) There is only one page we can post to in any blog.
(2) The static pages http://en.support.wordpress.com/pages/ we bloggers create do not automatically update.

Only the dynamic pages like Archives, Categories and Tags created by the software when we publish a post will update automatically update with new posts.

By default the front page of the blog is the Page that displays all posts in your blog. You can create a static front page and have your published posts display on another page http://en.support.wordpress.com/pages/front-page/ but doing that does not change what follows.

Though there is only one dynamic page in a blog for posts (not pages)http://en.support.wordpress.com/post-vs-page/ and we cannot post to more than that one page, we can create the appearance that we have posted to more than one page.

This guide will walk you through how to create category pages for your blog, to display groupings of similar posts on pages other than your front page.http://en.support.wordpress.com/category-pages/

Here's a link to my post on thishttp://onecoolsitebloggingtips.com/2013/07/25/create-a-wordpress-website-step-by-step/

There are many common errors, misunderstandings and misconceptions when creating custom menus and there are some tweaks you can use to improve your custom menu as well.
http://wpbtips.wordpress.com/2011/12/19/custom-menus/