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on a fresh install there was no need to install news 1.1 1st.. you should have just overwritten all the files and then installed it..
if u installed news 1 1st, you will have to go thru the upgrade procedure for updating 1 to 1.2.1 which i think is by using the upgrade script aswell..
to remove the table u need to go into phpmyadmin..
as u simply removed the folder the tables have been left on the server..
i should 1st try and copy the original news 1 files back to the server and then check your site.. the news module should then appear as installed..
then you should be able to go into admin and uninstall it..