The reason there are no instructions to edit the newreply.php file for v3.1 is because it's really not necessary. During the installation process, it modifies your post table to add an extra column which is used to determine if the post is the first in the thread. Once the newthread.php file is modified, it will always insert a 'Y' into that column indicating that the post is the first in the thread. Since the column is set to have an "N" by default, it's really not necessary to also edit the newreply file.
Rolodex - Did you make the news posts before or after installing the script? If the posts were made before you installed the script, then that is the reason they are not showing up. If you'll refer to
this post there are instructions on how you can manually update those posts.
If that's not the case and the posts were made after the script was installed, please post or PM me a link to your website, and let me know what you have your News Forum ID set to and I'll take a look to figure out what's wrong.