I am on MWPSK 1.3 ASP.NET 2.0
News in the sidebar works for me.
But maybe "move to the sidebar" is the wrong way to describe it. It does not move the whole thing out of the body of the page, to the sidebar.
You get only the headlines of news items in the sidebar on every page, and the main NewsList section is still in the body of the page that it was created on.
If you click one of the headlines in the sidebar of any page, it takes you to the page that the NewsList section was placed on, with the selected new item expanded.
BTW I notice that the address bar says "http .... /default.aspx ?pg=blahblah lots of parameters" instead of "http.. /newspage.aspx " - a minor cosmetic bug?