Paths to posts

I have installed the blog app and followed the tutorials and things are mostly working. Unfortunately my grasp of PHP is minimal at best. I've renamed the 'blog' folder 'news' and have blog posts showing on the home page using homepage_post_in_list.html and the following in index.php in the root directory.

 <?php
perch_blog_custom(array(
  'sort'=>'postDateTime',
  'sort-order'=>'DESC',
  'template'=>'blog/homepage_post_in_list.html',
  'count'=>2
)); ?>

When I change the Blog post page path in settings to

news/post.php?s={postSlug}

the URLs from the blog index.php and archive.php are

https://localhost/news/news/post.php?s=2014-08-23-slug-for-post

rather than

https://localhost/news/post.php?s=2014-08-23-slug-for-post

but I get the above (correct?) path when set as

post.php?s={postSlug}

However the links from the home page( index.php inside the root directory) only work with the first setting.

Can anyone explain what I need to edit where to solve this?

Thanks.