Hi all, a bunch of people have emailed me about the solution as I managed to get it working on my site.
I had a lot of trouble getting it to work and cant recall the exact thing I did to get it going. Here are the things you might try.
1. On the Homepage Options section of the Theme settings, make sure Featured Posts is set to YES and that (below that) you have a number greater than 0 for Featured Posts.
2. Make sure your images for the slideshow are the correct dimension and file format. Mine are 950×430 and are PNG files.
3. Load those images into a post each. In other words, create a new Post for each image you want in the slideshow. The image should be the only thing in the post. Then down on the bottom right, check the box for Featured Image.
Hope this helps! Good luck.