I looked and looked for an answer to my problem on this forum but no one seems to have had this problem.
I did try Juggledads solution "Getting Configure Excerpts to work in all cases" but I don't think it applies to my solution. I didn't work.
Basically when I turn the "Only Excerpts" option on for the "Posts or excerpts on HOME page?" I get this error when I view the page:
Fatal error: Call to undefined function: the_post_thumbnail() in /homepages/22/d106426728/htdocs/blog/wp-content/themes/atahualpa/functions/bfa_post_parts.php on line 124
I am using Atahualpa 3.4.5 on Wordpress 2.8.6