Problem with "Read More" tag

I’ve got a problem with “Read More” tag – it does show in the post on the homepage, it does link to the full article, but it doesn’t split the text in the place i want.
It seems like it splits the text after fixed number of signs in the post.

I’ve tried to insert

<?php
global $more;
$more = 0;
?>

just after the the_post(), just before filter with the_content, inside entry div, but none of this worked.
I’m not good at coding, so i really dont have a clue what can i do to fix it.

My index.php looks like:

<?php get_header(); ?>
	<div id="main-area">
		<?php
			if (is_home()) {
				$args=array(
				   'showposts'=> (int) get_option('memoir_homepage_posts'),
				   'paged'=>$paged,
				   'category__not_in' => (array) get_option('memoir_exlcats_recent'),
				);
				query_posts($args);
			}
		?>

		<?php if (have_posts()) : while (have_posts()) : the_post(); ?>

			<div class="entry clearfix">
<?php
				global $more;
				$more = 0;
				?>
				<h2 class="title"><a href="<?php the_permalink(); ?>"><?php the_title(); ?></a></h2>
				<?php $thumb = '';
				$width = 135;
				$height = 135;
				$classtext = '';
				$titletext = get_the_title();
				$thumbnail = get_thumbnail($width,$height,$classtext,$titletext,$titletext,false,'Entry');
				$thumb = $thumbnail["thumb"]; ?>

				<?php if($thumb <> '' && get_option('memoir_thumbnails_index') == 'on') { ?>
					<div class="post-thumbnail alignleft">
						<a href="<?php the_permalink(); ?>">
							<?php print_thumbnail($thumb, $thumbnail["use_timthumb"], $titletext, $width, $height, $classtext); ?>
							<span class="post-overlay"></span>
						</a>
					</div> 	<!-- end .post-thumbnail -->

				<?php } ?>

				<?php if ( get_option('memoir_blog_style') == 'on' ){ ?>

					<?php echo apply_filters('the_content',et_create_dropcaps(get_the_content('Wi?cej'))); ?>
				<?php } else { ?>
					<p><?php echo et_create_dropcaps(truncate_post(775,false)); ?></p>
				<?php } ?>

				<div class="clear"></div>

				<?php if ( get_option('memoir_readmore_button') == 'on' ) { ?>
					<a href="<?php the_permalink(); ?>" class="readmore"><span><?php esc_html_e('Wi?cej', 'Memoir'); ?></span></a>

					<div class="clear"></div>
				<?php } ?>

				<?php get_template_part('includes/postinfo'); ?>
			</div> <!-- end .entry -->

		<?php endwhile; ?>
			<div class="page-navi clearfix">
				<?php if(function_exists('wp_pagenavi')) { wp_pagenavi(); }
				else { ?>
					 <?php get_template_part('includes/navigation'); ?>
				<?php } ?>
			</div> <!-- end .entry -->
		<?php else : ?>
			<?php get_template_part('includes/no-results'); ?>
		<?php endif; wp_reset_query(); ?>
	</div> <!-- end #main-area -->
	<?php get_sidebar(); ?>
<?php get_footer(); ?>

I’ve got WordPress 3.3.2 and Memoir theme (i dont know which version, i’m not the one who has installed it).

What can i do to fix it?