Custom WordPress Loop

Hello. I am looking to create a custom loop for my homepage and then subsequent page on my site.

My idea is this:

Homepage
– Custom Static HTML
– Recent Post Grouped by Month
— January 2010 (Post 1, Post 2)
— February 2010 (Post 1, Post 2)
— Limit to last 5 posts

Pages
– Regular WordPress Loop

What is the best way to accomplish this using index.php, home.php, page.php and single.php?

index.php

<?php
get_header();
wp_reset_query();
if (is_home()) {
  include (TEMPLATEPATH . '/home.php');
} else { ?>
        <div id="page">
          <div class="two-thirds">
            <?php if ( have_posts() ) : while ( have_posts() ) : the_post(); ?>
              <?php the_content(); ?>
            <?php endforeach; else: ?>
              <p><?php _e('Sorry, no content matched your criteria.'); ?></p>
            <?php endif; } ?>
          </div>
          <div class="one-third">
<?php get_sidebar(); ?>
          </div>
        </div>
<?php get_footer(); ?>

home.php

<div class="one-third">
            <h2>Recent News</h2>
            <?php if ( have_posts() ) : while ( have_posts() ) : the_post(); ?>
            <h3><?php the_time('F Y'); ?></h3>
            <p id="post-<?php the_ID(); ?> class="news-item"><span class="news-title"><a href="<?php the_permalink() ?>" rel="bookmark" title="Permanent Link to <?php the_title_attribute(); ?>"><?php the_title(); ?></a></span> <?php the_content('Read More...'); ?></p>
            <?php endwhile; ?>
            <?php else : ?>
            <h3><?php date("F Y"); ?></h3>
            <p>No recent updates...</p>
          </div>
          <?php endif;  ?>
        </div>
<?php get_footer(); ?>

Does this make sense?