I would say the biggest problem would be that you are using line breaks instead of div tags. If you were to format like this:
HTML Code:
<div>
<div id="category">
Latest News
</div>
<div>
<div id="head">
<div id="title">Monday, May 09, 2011, 6:20 A.M.</div>
<div id="bar"><img src="" /></div>
</div>
<div id="content">
<div id="data">Last night my s ...</div>
<div id="picture"><img src="" /></div>
</div>
</div>
</div>
and then do your div and font formatting using only css, it would be much easier to control positioning and formatting everything.