Hello Wordpress rookies,

I'm stuck on something and have spent over 2 hours trying to figure out how to accomplish this task.

I'm using the LifeStyle theme by Brian Gardner (now available at Studiopress). The theme has an option to show BLOG on a different page than the homepage. The only benefit of doing this is that you can keep all other pages static except the Blog page, kinda gives the look of a website. So I created a new page called "Blog" and used the page_blog.php template for this page. The only problem with the code for page_blog.php is that it picks up posts from a particular category using the query_posts() function. The code is:

Code:
<?php $page = (get_query_var('paged')) ? get_query_var('paged') : 1; query_posts("cat=".get_theme_mod('blog_cat')."&showposts=".get_theme_mod('blog_cat_num')."&paged=$page"); while ( have_posts() ) : the_post() ?>
The category ID is chosen through the LifeStyle theme options and you can assign a category (in fact, you "have to" choose a category, you can't just leave it blank to display posts from all categories). Is there a way to display posts from ALL categories on this BLOG page?

Would appreciate your help.

Regards,
Adarsh.

Edit: Here is the complete page code:
Code:
<?php
/*
Template Name: Blog
*/
?>
<?php get_header(); ?>
<div id="content">
	<div id="contentleft">
		<div class="postarea">
		<?php include(TEMPLATEPATH."/breadcrumb.php");?>
			<?php $page = (get_query_var('paged')) ? get_query_var('paged') : 1; query_posts("cat=".get_theme_mod('blog_cat')."&showposts=".get_theme_mod('blog_cat_num')."&paged=$page"); while ( have_posts() ) : the_post() ?>
			<h1><a href="<?php the_permalink() ?>" rel="bookmark"><?php the_title(); ?></a></h1>
			<div class="date">
				<div class="dateleft">
					<div class="time"><?php the_time('F j, Y'); ?></div>
				</div>
				<div class="dateright">
					<p><span class="icomment"><a href="<?php the_permalink(); ?>#comments"><?php comments_number(__('Leave a Comment', 'studiopress'), __('1 Comment', 'studiopress'), __('% Comments', 'studiopress')); ?></a></span></p> 
				</div>
			</div>
			<?php the_excerpt(__('[Read more]', 'studiopress'));?><div class="clear"></div>
			<div class="postmeta2">
			</div>
			<?php endwhile; ?>
			<p><?php posts_nav_link(); ?></p>
		</div>
	</div>
<?php include(TEMPLATEPATH."/sidebar.php");?>
</div>
<?php // The main column ends  ?>
<?php get_footer(); ?>