If this is a configuration issue, it's one that exists on all four of the sites I maintain, on 2 different hosts. It also seems to be the case on some of the other XOOPS sites I checked out earlier today, but I don't know if those webmasters noticed it or not.
The topic selection and number of news items displays is set in the News module preferences, when I turn it off the selector box goes away, but it doesn't fix the problem. I changed over to the "Topics View" in the New Module settings, and this seems to force whatever topics have news in them, to display the latest news item, and the last few recent items beneath it as links. "Topics View" looks like it's working exactly as it should, so I can go with that for now. I think it's only the "Classic View" that's buggy.
I'm not a php coder other than by guesswork and luck, so hacking the module to fix this would be more than my php skills are up to. Looking over the index.php file, however, what I do notice is that there's a '$storytopic' variable which is set to 0, and some code that calls for the 'topic_id'. I think that's where the problem is, the default 'topic_id' needs to be set to 1 in order to call the first topic automatically. Just a best guess though.
The only workaround I can think of is to replace the "Main Menu" block with a custom block called "Main", and manually input the desired options. That way I can force the News module to go to the first topic with a links like this;
<br> <a href="{X_SITEURL}modules/news/index.php?storytopic=1&storynum=5">Homea><br><br>
<a href="{X_SITEURL}modules/news/index.php?storytopic=1&storynum=5">Newsa><br><br>
<a href="{X_SITEURL}modules/news/archive.php">Archivesa><br><br>
<a href="{X_SITEURL}modules/news/submit.php">Post Newsa>
This works for calls to the News module, but since my site is set up to use the News module as the startup page (System -> Preferences), a necessity to make the theme operate correctly, the initial display of the website to arriving visitors only displays a single, old news item. They have to select the "Home" or "News" option somewhere in the site, to see the correct news display.
If you (or anyone) has an idea to fix the "Classic View" in News 1.44 with, I'd really appreciate it.