I am trying to make a news section in my website, and when ever there is topic in the news section, The first post would appear in the news page. I need to get some things straight.

1) all my punbb stuff is going to be in my root folder if I want to do this with my homepage?
2) I rename index.php from punbb to forum.php, and the new index.php that I will create would be my home page?
3) All this is going to be on my homepage if number 2 is true

<?php

define('PUN_ROOT', './');
define('PUN_QUIET_VISIT', 1);
require PUN_ROOT.'include/common.php';

$page_title = pun_htmlspecialchars($pun_config['o_board_title']);
define('PUN_ALLOW_INDEX', 1);
require PUN_ROOT.'header.php';
require PUN_ROOT.'include/parser.php';

function pun_news($fid='', $show=15, $truncate=1)
{
    global $lang_common, $db, $pun_config, $db_prefix;
    $max_subject_length = 30;
    $show_max_topics = 50;
    $fid = intval($fid);
    $order_by = 't.posted';
    $forum_sql = '';
    // Was a forum ID supplied?
    if ( $fid ) $forum_sql = 'f.id='.$fid.' AND ';
    $show = intval($show);
    if ($show < 1 || $show > $show_max_topics)
    $show = 15;
    $saveddate="";
    // Fetch $show topics
    $result = $db->query('SELECT t.id, t.poster, t.subject, t.posted, t.last_post, f.id AS fid, f.forum_name FROM '.$db_prefix.'topics AS t INNER JOIN '.$db_prefix.'forums AS f ON t.forum_id=f.id WHERE f.id='.$fid.' AND t.moved_to IS NULL ORDER BY '.$order_by.' DESC') or error('Unable to fetch topic list', __FILE__, __LINE__, $db->error());
    $show_count = 0;
    if ( !$db->num_rows($result) ) return $output;
    while ( ($show_count < $show) && ($cur_topic = $db->fetch_assoc($result)) ) {
        $temp = '';
        if ($pun_config['o_censoring'] == '1')
            $cur_topic['subject'] = censor_words($cur_topic['subject']);
        if (pun_strlen($cur_topic['subject']) > $max_subject_length)
            $subject_truncated = trim(substr($cur_topic['subject'], 0, ($max_subject_length-5))).' ...';
        else
            $subject_truncated = $cur_topic['subject'];
        $newsheading = '<a href="'.$pun_config['o_base_url'].'/viewtopic.php?id='.$cur_topic['id'].'&action=new" title="'.pun_htmlspecialchars($cur_topic['subject']).'">'.pun_htmlspecialchars($subject_truncated).'</a> - <em>Posted by '.$cur_topic['poster'].' at '.date('h:i A', $cur_topic['posted']).'</em><br>';
        // Group posts by date    
        $thisdate = date('l, d F Y', $cur_topic['posted']);
        if ($thisdate != $saveddate) 
        {
            if ($saveddate)
            {
                $temp .= "</div></div>";
            }
            $temp .= '<div class="block"><h2><span>'.$thisdate.'</span></h2><div class="box"><div class="inbox"><p>';
            $saveddate = $thisdate;
        }
        else {
            $temp .= '<div class="inbox"><p>';
        }
        $temp .= $newsheading.'</p><p>';
        $id = $cur_topic['id'];
        $msg = $db->query('SELECT id, poster, poster_id, poster_ip, poster_email, message, posted, edited, edited_by FROM '.$db_prefix.'posts WHERE topic_id='.$id.' LIMIT 1') or error('Unable to fetch post info', __FILE__, __LINE__, $db->error());
            if ( !$db->num_rows($msg) ) continue;
        $cur_post = $db->fetch_assoc($msg);
        // Display first paragraph only (comment out next four lines to turn off)
        if ($truncate == 1)
        {
        $paragraph = preg_split("/\s*\n+/", $cur_post['message']);
            if (isset($paragraph[1])) {
                $cur_post['message'] = $paragraph[0] . "...";
            }
        }
        $cur_post['message'] = parse_message($cur_post['message'], 0);
        $temp .= $cur_post['message'];
        $temp .= "</p></div>";
        if (isset($output)) {
            $output .= $temp;
        }
        else {
            $output = $temp;
        }
        ++$show_count;
    } // end of while
    $output .= "</div></div>";
    return $output;
}
?>
        <div class="block">
            <h2><span>Welcome</span></h2>
            <div class="box">
                <div class="inbox">
                    <p>
                    Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Praesent augue. Nulla facilisi. Fusce bibendum accumsan erat. Quisque sollicitudin mattis neque. Sed dapibus. Integer a lectus eu sem consequat pellentesque. Morbi rhoncus nulla. Duis adipiscing interdum velit. Fusce ante. Ut vitae enim sit amet magna sodales hendrerit. In sed tortor at sapien convallis eleifend. Proin mauris. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Ut metus. Cras ac arcu et arcu porttitor blandit. Nam vitae lectus eget mauris sollicitudin placerat. Suspendisse vestibulum. Donec varius libero. Duis velit tellus, euismod vitae, consequat sed, consectetuer ut, purus.
                    </p>
                    <p>
                    Praesent viverra venenatis magna. Etiam in dolor. Ut in justo ac nibh malesuada cursus. Duis urna arcu, aliquam vitae, consequat nec, tincidunt non, mi. Nunc lobortis. Nunc pharetra. Sed porttitor. Maecenas turpis tortor, blandit nec, dignissim in, porttitor eu, odio. In hac habitasse platea dictumst. Suspendisse augue odio, ornare a, elementum ac, tincidunt varius, orci. Nulla libero ante, hendrerit ac, consectetuer eu, sollicitudin et, eros. Duis sapien. Suspendisse ornare enim sit amet dui. Donec ullamcorper diam.
                    </p>
                </div>
            </div>
        </div>
<?php
echo pun_news(1, 5, 0);

require PUN_ROOT.'footer.php';

4)what does "truncate news" mean?

I have more questions, but I need to know the answers for the first 4 before continuing. thanks if you can help.