Phil,
Thank you for your explanation and help.
1. The Feature products should be showing on the home page only. Use selected featured products type on homepage only) is checked. But for some reason, it is showing on this category (whereas it shouldn't be):
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Do you know what might have caused this? Xcart bug, maybe?
2. As for the New products, if I set to showing 6 products, the fifth products got cut off:
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Thank you for your time.