EDIT: hey calguy you type faster than me...
The new News that comes with CMSMS 1.1 has some great new features one of which is not so obvious, the template you see when you open the Summary or Detail template tab doesn't effect either one it's just a sample to show the default layout.
If you look below them you will see templates called Sample, should be called Default, click this one as it is the one that the news is using, unless you use one of the new features which will let you add a template and call it in the news tag w/o having to put it into the modules/News/templates folder which if you look at the Help for News it still says to do, needs changing, and you can make a new template and check it as default that all news items will use and still call the Sample or other templates with the tag...
Anyways click the Sample template and make your changes to it...
Or just use CSS and make those as .NewsSummaryCategory {display:none}...
