Blog - is it possible for it to look like this?

I want the blog link on our site (not up yet - but will once this is sorted) to look like this:
http://screwtheninetofive.com/blog/

Picture (that reader can click and be taken there)
Small excerpt
read more link

....
when I tried making ours
- the feature picture was not clickable
- the excerpt was messy - literally no breaks and it had ALL of the text from the post
- the read more button worked though =)