Place <?php newposts_display(); ?> in your templates right next to the post title (in index.php) e.g. find the piece of code <?php the_title(); ?> and insert the following piece of code in front of or after it <?php newposts_display() ?
This step? That's easy, man, just look for the <?php the_title(); ?> template tag on the index. If you cant find it, send me the index.php of your theme.