I have a custom template being used as the home page, which is using query_posts and get_posts* throughout the page, and I too could not get More to work.
However, after adding “$more = 0” above my query_posts call, it worked fine.
* I’m annoyed that I can’t exclude categories from get_posts. I’m also annoyed that the default behavior of query_posts is to ignore the More tag when showposts=1 …