I simply want to return the most recent 2 posts but my code returns all of the posts, any idea the way i can deal with this?

Code below,

Thanks,

R.

<?php
 $postslist = query_posts('posts_per_page=2');


 foreach ($postslist as $post) : 
    setup_postdata($post);
 ?> 
 <div class="post">

 <?php the_date('d/m/y', '<div class="date">', '</div>'); ?>

 <?php the_title('<div class="title">', '</div>'); ?>   
 <?php the_excerpt(); ?>
  <?php echo '<a class="readmore" href="'. get_permalink() . '">' . __( 'Read More <span class="meta-nav">&raquo;</span>', 'twentyten' ) . '</a>';?>
 </div>
 <?php endforeach; ?>

Try:

query_posts( array( 'posts_per_page' => 2 ) );

You need to have the ability to make this happen easily with the Wordpress admin panel.

Visit Configurations -> Reading through -> after which alter the number within the box alongside "Blog pages show for the most part" to two.

Does that solve the problem?