The Settings > Reading page should work, that’s the only way to do it in WordPress other than having a front-page.php or home.php template (this is the way I’ve been doing it).
The above method should work, but if you don’t plan on using the home widgets then you could remove all of the home widgets and your blog will show up as the homepage by default.
If you’re still having issues setting a home page, I can login for you and take a quick look if you want. If so, just create a temporary user/password.
Here is more info on how it all works – http://codex.wordpress.org/Creating_a_Static_Front_Page