WPML homepage and other issues

Hi,
I have followed the instructions on installing the theme and the WPML plug in, so far tediously creating the structure of pages in English and their translations in Croatian, Bosnian and Serbian. When the default language is English the theme seems to be working fine with the plug in except when I click on the flag of another language and then I click on the logo to get the 404 page. However, another, to me, so far insurmountable problem, happens when I switch to Croatian or Serbian or Bosnian as the default language. In that case, the homepage always opens as the “Error 404 – page not found”. When I change it back to English the home pages in Serbian, Croatian or Bosnian do open when I click on the flag. I searched all over the forums and, among other things, found http://wpml.org/forums/topic/default-language-and-search-page-fails/ but this did not help me. All my work so far is useless if there is no fix to this problem. Namely, on this site the default language must be a language other than English (Croatian, Serbian or Bosnian). I also could not fix the issue of finding a way to having the drop-down menu instead of the default flags. With a patch you gave I can get rid of the flags but the drop down menu shows but will not work.
I hope you understand my frustration with both the theme and the plug in not least because of the time that I do not have.
Thank you for your help and understanding,
Alex

PS
log in to http://www.kfbl.edu.ba/wp/wp-login.php, user name: admin, password: banjaluka and see it for yourself.