D'oh!
The HTML export problem can be solved if I simply remove (require 'org-publish) for org-version 7.x.x, and replace it with (require 'ox-publish) for org-version 8.x.x at the very top of my .emacs file.
Why the didn't the official site just say so? D'oh!
As of 2013 Oct 31, the babel problem is still unsolved as babel site mentions that it is integrated in org-version 7.x.x but does not mention anything about 8.x.x. (see http://orgmode.org/worg/org-contrib/babel/). Is there anyone using the bleeding edge version of babel with org-version 8.x.x without problem?