I seem to have the same problem. Since I upgraded to 2.1 from 2.03 on 3rd Feb 2007 I have lost the ability to set the home page for our church site: cambray dot org. The static page plugin versions 2.4 and 2.6 do not seem to work. I had a page called home.php (as far as I can remember ) I tried to rename it index as its slug name and it seemed to disappear. When wordpress had finished doing the attempted rename it sent me to a 404 page (which I guess is generated by the ISP host,1and1 dot co dot uk )cambray dot org/index – it had sedoparking dot com links on it . I have created a non wordpress index folder to prevent people arriving at a broken site if they arrive at the site this way. The host provider said something about the htaccess file. The text in the current htaccess one seems to be identical to the one when I backed up the site in 2006 other than the absense of wordpress on line 4 below RewriteBase /wordpress/
# BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /wordpress/
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /wordpress/index.php [L]
</IfModule>
# END WordPress
If anyone has any ideas as I am out of my depth here. PS Thank you WordPress community for a great website tool !
Jim