you MUST change the configuration of this news setup:
  cd to %%NEWSCTL%% and change the following files...
mailname, whoami, organization, mailpaths, sys, readnews.ctl, postdefltgroup
  to suit your local system and news topology.
check that you have vaild aliases in report.ctl,
  so any problem can be reported.

for ease of administration you may add a shell:
pw usermod news -d %%NEWSCTL%% -s /bin/csh