Ok – if you install through plugin manager nothing (NOTHING) no plugin seem to work fine. I have no idea what that does. but I manually copied the file to plugins folder and it works.
Ok I understand now. Home page then really is a custom index.php modified per your need. But still – the static front page plugin in is not working- site below: https://www.jayinfo.net
couldnt find any other resources. I might have to go with the other option suggessted in wordpress doc. Thanks- let me know if someone had simillar problems.