I took your code, made it into a ‘Page Template’, and removed the bullets and made it look all nice and pretty.
<?php
/*
Template Name: Links Page
*/
?>
<?php get_header(); ?>
<div id="posts" class="page">
<?php while(have_posts()) : the_post(); ?>
<div class="post" id="post-<?php the_ID(); ?>">
<h2><a href="<?php the_permalink(); ?>" title="<?php the_title(); ?>"><?php the_title(); ?></a></h2>
<div class="entry">
<?php wp_list_bookmarks('&category_before=&category_after=&title_before=<h3>&title_after=</h3>&show_images=0&show_images=1'); ?>
</div>
</div>
<?php endwhile; ?>
</div>
<?php get_sidebar(); ?>
<?php get_footer(); ?>
<?php wp_footer(); ?>
</div>
</body>
</html>
To use it, create a new static page and set ‘Page Template’ to ‘Links Page’. The Page Template setting can be found on the right hand side toolbar in WP 2.7.