Yes, thats pretty much it.. each script needs its own connection name. So each headline/news script would have a seperate one.. make sure you rename every instance of $connection (im pretty sure it shows in only the script, and not the config file)
This worked like a charm for me

And you were getting pretty much the same errors.
Example:
Ive incuded 1 news, and 2 headlines on my index.php
News
$connection in the mainnews.php was renamed to
$connectionnews
Headlines
$connection in the t2headlines.php script was renamed to
$connectiont2
$connectoin in my daocheadlines.php was renamed to
$connectiondaoc
Let me know how it works out..