How to add posts in Featured Slider?
First you need to add some posts.
1. goto Appearance > Theme Options > Home Featured Block
2. click on Add New button
3. give a title, choose a post from the dropdown, upload image for the slide and a short decription (optional).
4. add more slides
5. finally Save changes.
and everything should works fine.
Check the video: http://screencast.com/t/YR1nNnxHnUB