1) Create news
2) Open the article where you want to have the news block or use a "service" article that just holds the News content part
3) Create new content part "news"
4) Select template (you can also create a new one)
5) Keep in mind you can use tags and some special filters there too to limit choosen news
6) Think about a target article holding news content part in case you use systemwide* news block
6) Save
*) Remember - you can use content parts in your template systemwide. So check the
ID of the news content part and use {SHOW_CONTENT:CP,
ID} in your template.