wpbootstrap | Wordpress theme based on the Twitter Bootstrap toolkit | Theme library

Edit: I am attempting to get this result, where my index.php generates a Bootstrap panel-body containing a corresponding post title each time a new post is made. I also want this panel-body to act as a link to the corresponding post (e.g. there is a post with the title 'SoFA at Market Day' and the panel-body on index.php contains the 'SoFA at Market Day' text and links to the 'SoFA on Market Day' post). Currently these panel-body's are contained in two separate columns, as shown in the code below.

Additionally, I would like these thumbnails to be arranged in descending order, with the newest post at the top left and the older posts following to the right, and then in the next row on the left, etc, as shown in the example image (meaning that 'SoFA at Market Day is the most recent post, 'Interview with...' is the 2nd most recent, and 'Cut Thumb ARI' is the 3rd most recent, 'Lecture by...' is the 4th most recent, etc, etc).

This is what my index.php currently looks like:

I am trying to use a simple tag to link to a favicon.ico in my header.php file and a .png logo in my index.php file in my WordPress theme, but without any luck. I've tested the link by replacing it with a hyperlink to an image hosted online, which works and proves that the tag isn't broken, but obviously I would prefer to be able to have the images linked within an internal img folder in the theme. The background image I have used in my site (which is linked in the bootstrap.css and is in the same 'img' folder as the two images I am trying to link to) works perfectly. I've tried copying the formatting of that href link but it doesn't seem to work either.