That code will work, except for one minor detail - you spelled cat
egory wrong. Other than that, drop that code into a new index template, name it something you'll remember (ex: last5.inc), and then include that file.
CODE
<? include('/full/path/to/last5.inc'); ?>
If you want to include the title as the link to the entry, along with the excerpt, try this code:
CODE
<MTEntries lastn="5" category="Personal">
<a href="<MTEntryPermalink>"><b><MTEntryTitle></b></a><br />
<MTEntryExcerpt convert_breaks="1">
</MTEntries>