First, once you sign into cutenews, go to Options then click the link Edit Categories which should be the last one in the right column.

Once there, it should have a little box that looks like this. Now you can name the category your making, example ideas for names are Tutorials, Layouts, Updates, etc. Once you name it, click Add Category.
NOTE: If your using cutenews for your site updates too, you must make a category for that.

Now repeat until you made all the categories you want~!

Once done, at the bottom of the Categories page, it should look something like this. Now, keeping that window up, open a new window and go to the pages that you want the cutenews to work on. On those pages, write;

The $number = "5"; is how many articles that will show, so the defult here would be '5'. Change it to how many as you would like.

The $category = "2"; is what category that will show up. Remember this? Well, now you need to look at the ID of the Categories. So whatever page your adding the code, add the ID of that category. An example would be like on my Home page with my updates would get the ID of 1, my PSP tutorials would get the ID of 2, and so on and so on.

The last part of the code, the include("path/to/show_news.php"); you want to put what your path to your cutenews. Mine would be cutenews/show_news.php as an example.

Once done, now when you Add News, you can choose what category you want your atricle to be under~!

And questions, feel free to email me!