First go to Graphene options–> Display–> “Excerpts display options” and untick “Show excerpts in front page”. Save settings.
Then go to Dashboard–> Settings–> Reading settings and enter 5 in Blog pages show at most. Then hit Save Changes buttton.
I hope this is what you are looking for,,
For your second question – Install this plugin called WP-PageNavi. (http://wordpress.org/extend/plugins/wp-pagenavi/)
Tip: Don’t select “This topic is resolved” option unless it is really resolved. (in this forum).