hi from where can i add quality news on my site....i mean i have made a website where i want to display quality news and some cool contents(optional).....from where can i get it free....

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RSSto html php scripts abound
Feed2HTML I use to display amherst & truro News, towns we work
rss feeds are free anyway, you just go to the news source you want, find there rss feed usually labelled with a cute red rss button and plug its address into the builder script

you mean i can use yahoo news feed on my site and yahoo wont feel bad or will not sue me???

Precisely that, the thumbnail is a preview of yahoo news in feed2html

will google adsense accept my website if i add free rss content???

google supply google rss newsfeeds,
so I cant see why not
I'm in google and I scrape CBS BBC ninemsn truro daily cape breton daily and amherst daily for relevant articles.
get hits to the news pages refered from google
the rss2html validates ,
the copyrights remain and are in every article
all the bots care about

I would suggest you to use Google reader, by subscribing for specific content you'll get constantly fresh contents that can give you idea about new topics.

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