Installed jekyll-postfiles from https://github.com/indirect/jekyll-postfiles or http://andre.arko.net/2010/09/06/jekyll-postfiles-plugin/
Updated configuration to use jekyll_postfile extension and put in first test files. Needed to switch to pretty permalinks. Updated nav links to match new permalink structure.
finishing postfile introduction by removing unnecessary images folder
Added postfiles for the first test post
Added category generator from http://recursive-design.com/projects/jekyll-plugins/
Replaced faulty downloaded generate_categories files by the right ones
Changed article index pages to refer to baseurl for index images
Edited category_index layout to match my blog.html format