There's a way to configure it to display one of the internal pages of wordpress in the settings, but my intention is to display a grand different .html static page as the homepage of it. Any way to do it?
Well if you dont wish to install the blog in directory/subdomain, you have to edit the blog index page and put your homepage codes in it, instead of wordpress's or your template's index page can be done via editing template under presentation
dunno why u would want it as .html when wordpress can use mod_rewrite, however i do have an article here about static homepages.