lol..in localhost, testing blog

BlaZe, it doesn't have any the_excerpt();

below is the index of the template
Code: 
<?php if ((!function_exists("check_theme_footer") || !function_exists("check_theme_header"))) { ?><?php { /* nothing */ } ?><?php } else { ?><?php get_header(); ?>

<?php get_sidebar('left'); ?>

<div id="content">
<div id="contentinner">
<?php include (TEMPLATEPATH . '/includes/breadcrumbs.php'); ?>

<?php $featured_slider_activate = get_theme_option('featured_activate'); if(($featured_slider_activate == '') || ($featured_slider_activate == 'No')) { ?>
<?php { /* nothing */ } ?>
<?php } else { ?>
<?php if((is_home()) && (is_front_page()) && ($paged < 1)) { ?>
<?php include (TEMPLATEPATH . '/includes/featured.php'); ?> 
<?php } ?>
<?php } ?>

<div id="post-entry">

<?php $temp = $wp_query; $wp_query= null; $wp_query = new WP_Query('showposts=&cat=&paged=' . $paged);?>

<?php $postcounter = 0; if ($wp_query->have_posts()) : ?>

<?php while ($wp_query->have_posts()) : $postcounter = $postcounter + 1; $wp_query->the_post();?>

<div class="post-meta" id="post-<?php the_ID(); ?>">
<h2><a href="<?php the_permalink(); ?>" rel="bookmark" title="<?php the_title(); ?>"><?php the_title(); ?></a></h2>
<span class="post-date">Posted by <?php the_author(); ?> on <?php the_time('F jS, Y h:i A') ?> | <?php $category = get_the_category();
if ($category) { echo '<a href="' . get_category_link( $category[0]->term_id ) . '" title="' . sprintf( __( "View all posts in %s" ), $category[0]->name ) . '" ' . '>' . $category[0]->name.'</a>'; } ?> | <?php comments_popup_link('No Comment', '1 Comment', '% Comments'); ?></span>
<?php $get_google_code = get_theme_option('adsense_loop'); if($get_google_code == '') { ?>
<?php } else { ?>
<?php if($postcounter <= 2){ ?>
<div class="adsense-loop">
<?php echo stripcslashes($get_google_code); ?>
</div>
<?php } ?>
<?php } ?>
<div class="post-content">
<?php if ( has_post_thumbnail() ) { ?>
<div class="thumb"><a href="<?php the_permalink(); ?>" title="<?php the_title(); ?>"><?php the_post_thumbnail(array(160,120), array('class' => 'alignleft')); ?></a></div>
<?php } else { ?>
<div class="thumb"><a href="<?php the_permalink(); ?>" title="<?php the_title(); ?>"><img src="<?php echo bloginfo('template_url'); ?>/scripts/timthumb.php?src=<?php echo get_post_image(); ?>&amp;w=160&amp;h=120&amp;zc=1&amp;q=100&amp;a=t" alt="<?php the_title(); ?>" class="alignleft" /></a></div>
<?php } ?>
<?php the_post_excerpt($excerpt_length=40); ?>
</div><!-- POST CONTENT END -->
<div class="clearfix"></div>
</div><!-- POST META <?php the_ID(); ?> END -->

<?php endwhile; ?>

<?php else : ?>

<p class="center">NOT FOUND</p>

<p class="center">Sorry, but you are looking for something that isn't here.</p>

<?php endif; ?>

<?php $wp_query = null; $wp_query = $temp; ?>

</div><!-- POST ENTRY END -->

<?php include (TEMPLATEPATH . '/includes/paginate.php'); ?>

</div><!-- CONTENTINNER END -->
</div><!-- CONTENT END -->

<?php get_sidebar('right'); ?>

<?php get_footer(); ?><?php } ?>