Look at this part, there's a problem - you're getting the index content from the database.
PHP Code:
// **********************************************************************
// Grab any dynamic article content from the content table
// **********************************************************************
$pagecontent = getsitecontent("index");
$article_title = $pagecontent[title];
$article_content = $pagecontent[content];
$article_content = nl2br($article_content);
Remove this, and now see if it works. ;)