Best Answer Danny , 04 February 2013 - 07:06 AM
The Blog Page, when you have configured it in Wordpress Admin Dashboard > Settings > Reading, is then considered a special page and therefore doesn't follow the normal procedure of standard pages.
So even though you can select a different template on the Blog Page itself, it will never do anything. Once the Page has been set as the Posts Page, you configure your Blog using the:
PageLines > Page Options > BlogGo to the full post