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Can I manually add a new page to the menu structure?
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Sure can! There is a simple menu.php file that contains the unordered list that you can add any additional links to. For some more functionality when modifying the menu, you can use CSS Menu Writer.
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If you select News and Events on the left side as highlighted and then select "view this page" under where it says "choose the content area you wish to edit below"
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Actually this is as designed, but i can understand your confusion. Let me try and explain the logic behind the templating feature of the CMS a little more...
The Template page (the page you specified in SS as a content management template) is not intended to be the public page of your site as much as just a template page to define where content goes for the pages based on that template.
For example, if you had a news website, you could have a template named "articles". The template defines the layout of all the article pages that a user would add to their site from within the CMS. This also defines the URL for the news section of your site (articles.php).
Here's where the template feature can be a little confusing, and where you are a little confused....
If you haven't yet created a new page based off the articles template, you can navigate to that URL and you will see the content of articles.php. Once you have added a page based off that template things change a little. Instead of showing the content page when browsing to articles.php, you are taken straight to the most recent page added (in the case of a news website...the most recent article). One way you could use this is by having a recent articles link on your site, and it will always jump straight to the most recently posted article.
Hope this clarifies things a little further for you.