Studio theme - blog/news template only shows avatar for posts how can I change it to dispay thumbnai

Hello,
Using the Studio theme and docs file states there are a lot of templates. The only one I see is Blog/news. Am I missing something?
Anyway the blog/news template is fine except it displays an avatar and I would like it to display the thumbnail for the recent posts. Aaron had a recent-Posts.zip file modifcation for the Plugin but I want it on a page called Blog, not the sidebar.
How can I edit the blog/news template to create a new template that does this. The php looked a little funky to me so I didn't want to mess it. (i.e calling actions I don't recognize).
Thanks