Pagination for Recent Listing Home Page. Ad banners in between listings?

Hi Mark and everyone else,

I have been helping my client on his website and again he has asked for some help/information which I cannot answer.

1) The recent listings widget for the home page, does it support pages? If so, how would we go about getting that setup so it shows. We have tried the custom query and managed to limit the amount of posts that show but the ones that are cut off just vanish, he would like for those to go to page 2/3/4 etc. but have the button(s) so his users can change pages to see those listings.

2) Is it possible to setup banner advertisments that other business can pay him to advertise their site/business. But these banners need to show in between the listings, I think he said every 3 or 4 listings he’d like to have a banner ad come up. This would also have to apply to the category pages too.

Thanks in advance.