Index: nav-menu-template.php
===================================================================
--- nav-menu-template.php	(revision 15490)
+++ nav-menu-template.php	(working copy)
@@ -258,6 +258,10 @@
 	$possible_taxonomy_ancestors = array();
 	$possible_object_parents = array();
 	$home_page_id = (int) get_option( 'page_for_posts' );
+	$front_page_display = get_option( 'show_on_front' );
+	
+	if ( 'posts' == $front_page_display ) 
+		$home_page_id = 0;
 
 	if ( $wp_query->is_singular && ! empty( $queried_object->post_type ) && ! is_post_type_hierarchical( $queried_object->post_type ) ) {
 		foreach ( (array) get_object_taxonomies( $queried_object->post_type ) as $taxonomy ) {