Hi Stephany

Two popular ways of doing what you want to do is to use a content rotator or "slider"  module and a news module that has "latest" news abilities or sub-modules.

With regards to the news module a module called DigArticle probably has the most robust latest news abilities. It is a full blown news publishing system and is the most expensive @ $89.00.  But for many applications it is well worth it.  For a low budget solution the News Articles module from Ventrian.com is the best choice.  The DNN Article module from ZLDNN would be kind of middle of the road although their huge number of sub-modules kind of messes up your module drop down in your control panel - DigArticle does all the same things (plus a few) with one sub-module.

With regards to the content rotator modules there are two ways you can go - a stand-alone slider module or a tabs module that can be used as a rotator.  It really kind of depends on how involved you want or need to get.  For a stand-alone slider module the Dream Slider from Markit Modules is the king. It has always been the best from the graphics side of things.  Another older one is still one of my favorites - Content Rotator 3.6 from MexMax - it was the best with slide timing options (the new Dream Slider has caught up) and to my knowledge is still the only one that will allow you to obtain slide content using an SQL query.  This is a VERY handy feature.

The benefit of a tabs module is it can be used as a rotator or manually clicked tabs.  The best choice here is Aggregator from DNNstuff.com.  It uses jqueryUI so you can use jquery's theme roller to easily build your theme/graphics to match your site.  Second place would probably be Live Tabs from Mandeeps.

These modules can be found on Ventrian.com, DNNStuff.com, and Snowcovered.com