Are these 2 completely different installations or two stores within one magento install (I believe you can do that with Magento) if they are 2 separate installs are they using the same database possibly?
It shows the image as well so it exists on this server.
I don’t know much about running 2 stores on one magento install but it looks like there is a misconfiguration in the routing and there isn’t a proper separation between the stores. Not sure if this is you or if this is a bug as far as the new.phtml file not pulling the right things however the link problem I think may be an issue with how you have it configured.
Sorry to bombard you with posts but one other thing came to mind. Did you mark the car products as new before or after the Battlebridge items. I would try marking the Battle Bridge items new again and see if they start showing up on your car site, it may be pulling the newest items over both sites with no distinction between the sites. I may be able to fix that by adding a website id into the queries. PM me and I can send you my e-mail address and we can give it a try.