I know want to take it to the next level and instead of showing my latest posts, I want to show Latest posts by category, which is an option on the graphene theme. When I select this option, my front page looks the same, it just shows the latest posts only.
Only posts that belong to the categories selected here will be displayed on the front page. Does not affect Static Front Page.
Try enabling Homepage Panes. This will give you the option you want.
Thanks Ken. Homepanes are enabled. Latest posts by category radio button is checked, but on my home page, it just shows the latest post, which are not from the different categories selected in the Admin panel/options of the theme. Two of the posts on my homepage are from the same category. I guess what I was expecting was maybe a header/title of the category with the post underneath or something like that?