I tried this hack out too. I get exactly the same issues as others are reporting i,e, trying to find news.php in my webserver root when my vbulletin forum is in forums/ and yes the white text over the username as well. Rather weird.
Apart from these teething issues it seems a great hack. I wonder if we could have an option to only show the first X amount of words or letters (as a spoiler) with a link to the full article. Long news takes up an enormous amount of space using this hack
Still testing but pretty pleased with what i have seen (if i can get both the new option, if possible, and the two bugs squashed).