On Featured products page you can configure appearance of a product in the list of featured items. Adding a product to this list doesn't automatically feature product in the store. It gives you an opportunity to edit product's Featured status.

Featured products will be available if you have Featured Products osCommerce contribution Installed. This contribution can be found here. Otherwise your Featured Products Page icon will be "grayed out", meaning the page won't be available. Also this page is not available while using Embedded database.

See Store Manager Documentation for details