the number of news articles that will be displayed on the news page is driven by this line:
if (!isset($newsArticles)) {
$newsArticles = 2;
}
if you inclrease that number, it will increase the number of articles that will be displayed.
as long as the image is after the while statement:
<?php } while ($row_CMStoRS = mysql_fetch_assoc($CMStoRS)); ?>
the image will still show regardless of how many news articles are displayed.