Posts of Category "Bulletin" on home page?

I'm running Atahualpa 3.4.2 on Wordpress 2.8.3. ...and I'm a Wordpress NOOB.

Mostly, I'm using Wordpress as a CMS for a site with lots of static pages. But I would like to have the most recent post (preferably the most recent post in the "bulletin" category) appear above the content of the page "home".

Settings>Reading>Front Page Displays is set to "a static page".

Can I add something to Altahualpa Options in the "content ABOVE the LOOP" section to display the latest post in the "bulletin" category?

or....

Should I change Settings>Reading>Front Page Displays to "your latest posts" with a loop size of 1, and try to add something to Altahualpa Options in the "content BELOW the LOOP" section to display the page "home". ...if so what goes there?

Thanks!