Changes on site for testing purposes:
7/21 Changed to The Toujours Theme.
I was confused at first — the question being about posts and categories/menus not working. But when I applied the theme, a “Getting Started” document helped me figure out how the theme works.
Once set up: very nice and clean home page with three most recent posts highlighted.
7/10 Changed to Dyad Theme: Clean, Featured Image theme.
Featured Image: Sheri Edwards; Creative Commons 3.0