The news mod does not support the EnableHTML mod by default. You'll have todo some modifications. Open News.pl and look for<br>
<table border="0"><tr><td bgcolor="orange" style="font-size:10px; color:black;">if ($enable_ubbc) {
&nbsp;&nbsp;$displayname = $tname;
&nbsp;&nbsp;require "$sourcedir/YaBBC.pl";
&nbsp;&nbsp;&DoUBBC;
}</td></tr></table>
replace it with<br>
<table border="0"><tr><td bgcolor="orange" style="font-size:10px; color:black;">### Begin Enable HTML Mod
if ($message =~ /\#&#101;nable_html/isg) {
&nbsp;&nbsp;$html_username = $tusername;
&nbsp;&nbsp;$message_backup = $message; # since $message is no local variable, it often gets overwritten accidently somehwere (couldn't find out where)
&nbsp;&nbsp;$enable_html = HTML_allow($html_username);
&nbsp;&nbsp;$message = $message_backup;
&nbsp;&nbsp;if ($enable_html == 1) {
&nbsp;&nbsp;&nbsp;&nbsp;$message =~ s/\#&#101;nable_html//isg;
&nbsp;&nbsp;&nbsp;&nbsp;$message =~ s/&lt;br&gt;/\n/ig;
&nbsp;&nbsp;&nbsp;&nbsp;&FromHTML($message);
&nbsp;&nbsp;}
} else { $enable_html = 0; }<br>

if ($enable_html != 1 && $enable_ubbc) {
&nbsp;&nbsp;$displayname = $tname;
&nbsp;&nbsp;require "$sourcedir/YaBBC.pl";
&nbsp;&nbsp;&DoUBBC;
}
### End Enable HTML Mod</td></tr></table>
Also make sure to have $only_first_paragraph and $max_number_of_words set to 0 to prevent the html from beeing cut off.
#enable_html

No, it will not work. You'd need a completely different set of instructions.