cw2,
Your TreeDefinitions should looks like this:
<?xml version="1.0" encoding="UTF-8"?>
<ElementStructure xmlns="http://www.composite.net/ns/management/trees/treemarkup/1.0" xmlns:f="http://www.composite.net/ns/function/1.0">
<ElementStructure.AllowedAttachments ApplicationName="News">
<DataType Type="Composite.Data.Types.IPage"/>
</ElementStructure.AllowedAttachments>
<ElementRoot>
<Children>
<Element Label="News" Id="Root">
<Actions>
<AddDataAction Label="Add news" Type="Composite.News.NewsItem"/>
</Actions>
<Children>
<DataFolderElements Type="Composite.News.NewsItem" DateFormat="yyyy" FieldGroupingName="Date" Display="Compact">
<Children>
<DataFolderElements DateFormat="MMMM" FieldGroupingName="Date" Display="Compact">
<Children>
<DataElements Type="Composite.News.NewsItem" Label="${C1:Data:Composite.News.NewsItem:Title}" Display="Auto">
<Filters>
<ParentIdFilter ParentType="Composite.Data.Types.IPage" ReferenceFieldName="PageId" />
</Filters>
<OrderBy>
<Field FieldName="Date" Direction="descending"></Field>
</OrderBy>
</DataElements>
</Children>
</DataFolderElements>
</Children>
</DataFolderElements>
</Children>
</Element>
</Children>
</ElementRoot>
</ElementStructure>