Magento 1.9 – How to Display Products on Home Page

Here are my questions
1.) How to display products of specific category?
2.) How can I organize the way it is displayed? (column, size, row, etc) ?

Hi. I have tried almost all the tutorials in google but I failed to display products in my Home Page. Although displaying "all products" is not working, the displaying of new items works fine. This is what I did so far.

This is the line of code which works:

{{block type="catalog/product_new" name="home.catalog.product.list" template="catalog/product/new.phtml"}}

Though the code above works, the way it displays the product is not right.

This line of code doesn't work:

{{block type="catalog/product_list" category_id="3" template="catalog/product/list.phtml"}}

Yes, I have tried clearing the cache as well. Also, I am using Magento 1.9.2.3.

UPDATE:
After following the instruction, something was displayed:

Although something was displayed on my homepage, this is not how I expect the products to be displayed. Why does it display like this ?