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News at Last. (whew) ...
I took one of the zip files I downloaded:
"XOOPS2_mod_news_1.44.zip"
copied it onto another directory and performed an extract here via WINZIP or RAR I think
FTP'ed the extracted "news" directory to the /modules directory
went in under the ADMIN account, and this time the module was there at the bottom with good non-broken image icons, ready to install without a hitch.
So the only thing I can think of in the prior attempts, was that the extract and/or FTP failed somewhere.
Even thought I have done extensive directory compares with a favorite application called Beyond Compare
http://www.scootersoftware.com that lets you compare files directories local remote, U name it. I'll be darn if I have found 1 bit out of place.
Bottom Line, News is installed & working. Read All about it :)
10/4 M.D.
Thanks to all the posters, their suggestions, etc.
Michael
tomatoe