Problem with Featured Posts Slideshow displaying post content insead of page con

Hi,

I am using the Featured Post Slideshow plugin to display my post thumbnails on my home page (static page). The problem is that when add it to my page it replaces all the home page content with all the thumbnails’ post content.

I have narrowed the problem down to being due to the

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

used in both the Featured-posts.php and the same code used on my home page but I don’t know what to do about it????

Here is the Featured-posts.php code:

<div id="feature_wrap">
<script type="text/javascript" >
	$(function() {
		$("#scrollable").scrollable({horizontal:true,size: 8});
	});
</script>
<div id="scrollable">
<a class="prev"></a>
<div class="items">
<?php query_posts('orderby=rand&cat=' . get_option('category-id') . '&showposts=' . get_option('numberposts')); ?>
<?php if (have_posts()) : while (have_posts()) : the_post(); ?>
<?php the_post_thumbnail();?>
<?php endwhile; else: ?>
<?php endif; ?>
</div>
<a class="next"></a>
</div>
<div style="clear: both;"></div>
</div>

and here is the content of my page:

iv id="container">
			<div id="content" role="main">
<?php if ( have_posts() ) while ( have_posts() ) : the_post(); ?>

			<div id="post-<?php the_ID(); ?>" <?php post_class(); ?>>
					<?php if ( is_front_page() ) { ?>

					<?php } else { ?>
						<h1 class="entry-title"><?php the_title(); ?></h1>
					<?php } ?>

<?php if (is_page('home')) {?>

<div id="slideshow">
<?php include (ABSPATH . '/wp-content/plugins/featured-posts-slideshow/featured-posts.php');?>
</div><div id="casestudies_home"><a href="case-studies/"><img src="<?php bloginfo('stylesheet_directory'); ?>/images/casestudies_img.gif" alt="case studies"/></a></div>
<? } ?>

					<div class="entry-content">
						<?php the_content(); ?>
						<?php wp_link_pages( array( 'before' => '<div class="page-link">' . __( 'Pages:', 'twentyten' ), 'after' => '</div>' ) ); ?>

					</div><!-- .entry-content -->
				</div><!-- #post-## -->

<?php endwhile; ?>
			</div><!-- #content -->
		</div><!-- #container -->

Can anyone help with this issue?

Cheers
Phil