<?php
$postnum = 0;
while (have_posts()) : the_post(); ?>
<?php if ($postnum <= 3){ ?>
<div <?php post_class() ?> id="post-<?php the_ID(); ?>">
<div class="date"><span><?php the_time('M j') ?></span></div>
<h2>(<?php echo $postnum;?>)<a href="<?php the_permalink() ?>"><?php the_title(); ?></a></h2>
<div class="post-image" style="text-align:center;">
<a href="<?php the_permalink() ?>"><img src="<?php bloginfo('template_directory' ); ?>/timthumb.php?src=<?php echo catch_that_image(); ?>&w=500&h=200&zc=1" alt="<?php the_title(); ?>" /></a>
</div>
<p><?php the_content('Read the rest of this entry »'); ?></p>
<p class="more"><a href="#">Read More</a></p>
</div>
</div>