in the WebAssist/plugins/cms_templates/news.php file, change:
<h1><?php echo WA_getCMSContent($database_PowerStoreConnection, $PowerStoreConnection, "News Pod", "Header"); ?></h1>
to:
<h1><?php echo str_replace(array("<p>","</p>"),"",WA_getCMSContent($database_PowerStoreConnection, $PowerStoreConnection, "News Pod", "Header")); ?></h1>