From a quick peek, you have a multitude of issues that need to be addressed.
A good starting point...
(I want it formatted like other posts so it isn't pushed right up to the edges
I think you want your loop to output inside the div id="content"? This should pick up the css styling of the content above the loop, so first move your closing div for content below the custom loop, above the closing div for container, see if that helps. Or, create a new div inside your custom loop with a different id and style that however you wish, if you want the loop output to be different than the styling of #content. try that and see what happens. You also have the option to place this custom loop in your function file and hook into thematic_belowcontent() as opposed to placing it in your template file. You could add a conditional statement to have this loop show only on specific pages, perhaps negating the need for this template completely.
Second, (probably not related to the issue at hand but just a note) you are wrapping your H1 tag with both strong and b. You might want to address that.
want to be able to use the 'read more' thingy)
Well, you are telling the loop to use php the_content(). This is a choice to be made on your backend. Do you want these posts to use the content and manually use the "more" tag in your post editing? There is a setting in the admin panel for that, or do you want to use an excerpt? If you want to use excerpt then change the_content to the_excerpt. You can write custom excerpts for each post which could display different content than the actual post if you wish.
So, a couple things to think about but first try and address the closing content div location and see if that sets you on the right path.