If you want to use this plugin to do this, you should probably try using a [post-list] shortcode.
Something like [post-list numberposts="1" category="cats"] should probably get you going. You might want to use [post-list numberposts="1" category="cats" show_excerpt="true"] if you want more than just the title to show up.
I’m having similar problems. I don’t know exactly when the problem started as demand for the website (http://www.welshcurling.org.uk/) is very seasonal and we are currently off-season. WPtouch now just displays a blank screen after loading the correct faviccon. I have temporarily disabled WPtouch as the main site is working fine…