The :layout option is usually used with :action or a single :partial, not with :collection's. The problem: yield is being called for every item in the list.
You'd have to look at the sources to figure out why :layout and :collection are acting this way; but suffice it to say your code should probably just be rewritten so that it doesn't rely on :layout and :collection working together.
Here's one way you could do so, with the assumption that reusing this code in other views is a high priority. Unless you're using lots of caching, rendering each partial tends to be fairly slow, especially if your news_feed has many items, so I've consolidated it into one.
controller/news_controller.rb
class NewsController < ApplicationController
def index
@news_feed = News.find(:all,
:order => Document::COL_DATE + ' DESC, id DESC')
end
end
views/news/index.html.erb
<%= render :partial => "news_feed",
:locals => { :news_feed => @news_feed} %>
views/news/_news_feed.html.erb
<ul class="news">
<% news_feed.each_with_index do |news_item, news_item_counter| %>
<li>
<%= newsitem_counter + 1 %>
<%# Code to print details for one item %>
</li>
<% end %>
</ul>
If rendering a whole bunch of partials is okay for you running-time wise, you might find this implementation of views/news/_news_feed.html.erb
nicer:
<div class="news">
<%= render :partial => 'news_item', :collection => news_feed, :spacer_template => "horizontal_break" %>
</div>
views/news/_news_item.html.erb
<%= newsitem_counter + 1 %>
<%# Code to print details for one item %>
views/news/_horizontal_break.html.erb
<hr />
So instead of rendering :layout, you render one big partial which wraps the collection.