Dear gsmartin,
the “Portfolio” section is editable via “Appearance > Theme Options > Homepage Settings – Portfolio Section”. The individual portfolio items are Posts from Category selected in these settings. So, if you want to create a new portfolio item, create a new Post and attach it to the Category selected in “Appearance > Theme Options > Homepage Settings – Portfolio Section” (the appropriate category can be select in option called “Portfolio Category”). For all the Posts in the portfolio Category must be set the featured image – otherwise it will not be visible in Portfolio.
By default, the Portfolio Section is automatically displayed on your homepage with the latest blog posts. You also can create a static page containing the Portfolio Section – simply choose the “Portfolio” page template instead of “Default Template” when you create or edit this page.
I hope that my answer will be helpful for you.
Tomas Toman