Aaaaah,
now i understand. Ok there are different abilitys.
1. You wanna have the news only on one page
Go in WB admin interface to the edit page section and the page where you wanna have the news. On top right you see "manage section". Go to this and add a code section. Insert in this code section the php code without "<?php" at the beginning and "?>" at the end. The code should look like the one you postedDidn't work on my test enviroment
2. You wanna have the news on every page at the same place (header or footer or wherever).Edit the index.php of your template and the code where you wanna have it. From your example it should the look like
<td>
<strong><u>Latest News:</u></strong>
<?php
<!--P
$number=1;
$category=1;
include("cutenews/show_news.php");
-->
?>
</td>
Not tested but it should work
Matthias