Can you be more specific as to what isn't working? version 0.4 of the blog is now released so install that first. There is still a problem with that version and the archive widget but I need to know that you are running the latest version and the exact nature of your problem.
Not being able to see code is frustrating. I'm wondering if the blog module is expecting to be called 'blog' rather than news? Not good coding, I know, but can you investigate? I think the relevant code is inside blogtree.php and/or archive.php.