There is not automatic way to convert a static page into a post. You have to copy and post the content form the page into a post, publish the post and then delete the page. Post vs. Page
I wanted to have it so one category appeared as the home page and just like normal, but I want the other category to appear on a separate page and not in the blog home page.
You are confused if you think that Categories are your front page. By default the running page for post in your blog is the front page. Categories can only be assigned to posts and not to pages. There is only one dynamic page in a blog for posts and we cannot post to more than that one page but we can create the appearance that we have posted to more than one page.
We organize our posts by assigning Categories to them. When we publish a post it automatically appears on the running page for posts and also on the Categories pages and Archives pages. Note: There must be one published post in each Category in order for there to be anything to display.
A custom menu allows you to display Categories with drop-downs to sub-categories in tabs along the horizontal navigation where normally only Pages tabs are displayed. If you wish you can also include Pages with drop-downs to sub-pages and/or custom links in your custom menu as well. You are in charge of what appears in a custom menu. You choose the order in which to display any and/or all the foregoing in your custom menu. You choose which to display and which to hide. http://en.support.wordpress.com/menus
Also note that if you do not want all the posts to show on the front page, then you can create 2 pages first 1 will be static front page for your site, and the other will be a “blog” page for your posts to display on. Then you can go here and assign them correctly > Settings > Reading.