Right, I've created a small example for you. I think it might have been due to you calling the wrong module layout, not entirely sure.
Here is a link to download the module. Uninstall the current module you're using via the Joomla backend and install this:
http://www.mediafire.com/download/ucp3prv219430zl/mod_products.zip
Also, don't forget to assign the module to a menu item. That might have been the problem before
Enjoy