Editing home text and product category placement issues can you help??

[psnewbie]

Hi I am very new PS user and think its great so far. I have just completed the 1.4 upgrade and cannot see how to edit the home page text editor as after upgrade the home page went back to latin and my picture is squashed! There doesn't seem to be any way of editing the modules text any more ???? Help please.
Also I am trying to upload product photos which I could do before the upgrade and now when I go into the product details and upload the pics I get this message: product must be in at least one Category, product must be in the default category.
I have looked and it says there are no products in category home, but there are many products in the sub categories and sub sub cats. What am I doing wrong???? Is anyone willing to communicate over the phone to help try to solve my issues as I am struggling and frustrated after this update!!