WPMU Nelo Theme Custom Home Page and Posts Page

I am having the following problem with the WPMU-Nelo Theme.

First, I want to use the Custom Home Page as the Static Front Page.
Secondly, I want to use a different page for Posts page.

Current Settings:
Under Appearance -> Customize -> Static Front Page -> Front Page Displays (A Static Page)

I have the following problems:
a) Front Page (Custom Home Page is not a option. shows --Select-- at present time)
b) Posts Page (I selected the page desired.)

Site acts as follows:
Custom Homepage shows for both default site page and also when the page selected for Posts Page is called.

So, I need to know how to set it so that Custom Homepage shows for default site page, and when page selected for Posts Page is called it is displayed.

Thanks