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Is the other way around dude!
http://www.Example.com/modules/news/index.phpremove the XOOPS folder (don't upload XOOPS folder) only the files in the html folder in your downloaded package.
You installed it wrongly.
I think I have to report to the XOOPS because now many people starting to install it in the wrong directory.
Make sure all the files is in the main first root into ftp program or web filemanager.