This extensions is EXACTLY what I am looking for ..however, it shows all my articles ..regardless of catergory. I..e its showing my Welcome Article besides my test news article (they are in different catergoeies).

I am new to Joomla so is there a way to "fix" this? I realize this might be how I am doing things ..or I am not understanding how the extension works.

In the configuration part of the module, you can specify the list of categories or sections ans after that the articles from those categories/sections will be displayed, not the all.