Please read this first Post vs. Page http://en.support.wordpress.com/post-vs-page/
(1) There is only one page we can post to in any blog.
(2) The static pages http://en.support.wordpress.com/pages/ we bloggers create do not automatically update.
Only the dynamic pages like Archives, Categories and Tags created by the software when we publish a post will update automatically update with new posts.
By default the front page of the blog is the Page that displays all posts in your blog. You can create a static front page and have your published posts display on another page http://en.support.wordpress.com/pages/front-page/ but doing that does not change what follows.
Though there is only one dynamic page in a blog for posts (not pages) http://en.support.wordpress.com/post-vs-page/ and we cannot post to more than that one page, we can create the appearance that we have posted to more than one page.
Setting up a menu is easy as pie, provided you know the differences between Posts and Pages, and the differences between static Pages, (which will never automatically update) and dynamic Categories pages which will automatically update when you publish Posts with Categories assigned to them.
Read this carefully http://wpbtips.wordpress.com/2010/06/30/posts-on-pages/
There are many common errors, misunderstandings and misconceptions when creating custom menus and there are some tweaks you can use to improve your custom menu as well.