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    Hi Mike, did you select “Homepage” on Layout?, be sure to select a category ID of your choice and then add it in the corresponding place of the Homepage block of code, the first line is for the “carousel”:
    {{block type=”catalog/product_list” category_id=”18″ template=”catalog/product/featured_products.phtml”}}

    The second line is for “Our latest products”:
    {{block type=”catalog/product_list” category_id=”12″ template=”catalog/product/list_homepage.phtml”}}

    Remeber to clear the cache.