Global News posts not appearing

Hello!

I’m building my first WP site and have installed the free Global News template. Following the instructions, I’ve created dummy stories to see how they look in different sections, using tags. ‘featured’ works fine, but tagging stories as ‘headlines’ doesn’t put them in the column to the right of the featured section, as I understand it should.

The coding reads:

<!-- highlights -->
    <div class="highlights">
      <ul>
        <?php query_posts('showposts='.stripslashes(get_option('gbn_headline_num')).'&tag=headlines'); ?>
        <?php while (have_posts()) : the_post(); ?>
        <li>
          <h5 class="category"><?php the_category(' '); ?></h5>
          <h3><a href="<?php the_permalink() ?>" title="<?php the_title(); ?>" class="title"><?php the_title(); ?></a></h3>
          <p><?php if(has_post_thumbnail()) { ?><a href="<?php the_permalink() ?>" title="<?php the_title(); ?>"><?php the_post_thumbnail('home-thumb') ?></a><?php } ?>
          <?php $excerpt = get_the_excerpt(); echo string_limit_words($excerpt,25); ?></p>
          <div class="meta"><?php the_time('F jS, Y') ?> | <?php comments_popup_link('No Comments', '1 Comment', '% Comments'); ?> | <a href="<?php the_permalink() ?>">Read more</a></div>
        </li>
        <?php endwhile; ?>
        <?php wp_reset_query(); ?>
      </ul>
    </div>
    <!-- / highlights -->

You can see how it comes out here: hallippia.co.uk – the stories tagged with ‘headlines’ can be seen in the newsflash, but not the column. Any ideas as to why this isn’t working?

Many thanks!
Giorgissimo