How do you:
1) create a page and select “Blog Template” and also choose which category for the Blog’s you want.
2) Then create a blog post and choose the category for that page….resulting in a page that shows all the blog posts for that category?
Thanks!
Sounds like you are looking for the functionality of WordPress 3.0 Menus Subpanel. In Dashboard go to ‘Appearance’ then ‘Menus’ and you can create a page that will show the posts from a specified category.
WordPress by default creates category archive that lists all of the category’s posts, but if you want to do that in a page then take a look at List category posts plugin