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There's no way to split the topic category and topic, as it's defined as <{$story.title}> You could edit the news template news_item.html as I did for a site:
Quote:
<{$story.title}>
<{$story.imglink}>
<{$story.text}>
Note i've commented out a few lines to remove the "Posted By" box and the box at the bottom with "reads" etc.
If you wanted to remove the news topic, you would have to remove <{$story.title}> from the template too.
Don't forget you have to clone the default template set first, and then set the cloned template as your default.
You can see my version in action at
http://www.scac.asn.au