Are you trying to change your column count in directly in the phtml file or is it in the xml? I tried to see what you had going on your site but it doesn’t show any new or featured products anymore. I see your regular category pages are showing 3 per row, so did you get that part working?
There are some adjustments you can make in (admin) system > config> catalog >frontend that may be of use to you, but keep in mind these settings effect your regular category pages as well. I would think the changes you need to make would be in the xml file though. You will likely have to put (in the block type="catalog/product_list")
As for the limit on rows, it’s hard to tell without seeing it. I wonder if it’s trying to paginate it...? You will likely have to add another action method line in the xml to allow more rows, but I don’t know the syntax and don’t want to tell you the wrong thing.