Another issue I’m having is the Paginated Post Grid on the home page does not respond to clicking the 2nd page (2) button.
This is just because you have a static page set as your frontpage. As noted in your user-documentation under the Builder section, WordPress has issues with pagination and a static frontpage for whatever reason.
Just go to Settings > Reading > Frontpage Displays and select “your latest posts”. Then, go to Appearance > Theme Options > Content > Homepage and select to show your custom layout.
Also, what template layout do you recommend use for the general blog page? I have used Post List. Don’t know if this could be a cause either.
Yeah, I’d say using the Post List page template is the easiest way to go. That’s what I have setup here: http://www.themeblvd.com/demo/alyeska/blog/