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I have a smimilar problem,
News is set as your default home page. This means that
when you add a block it goes on the page - but news is still in the background.
You can get a block which displays one of your news story (i think its called spotlight). You can also download a newer news module with spotlight included.
Once you have a module that allows you to display a news story in a block, then all you have to do is disable news as the default home page. Use spotlight block for your news story and then set the weight so its at the top. All other blocks can be weighted after the spotlight block.
Seems like a pain in the ass to me (I cant get spotlight to work as my version of PHP is not 4.3x).
Unless anyone knows any better way to do it?