Normally, newspaper headlines are short and to the point -- created to capture the reader's attention, making them want to read the story.
As for grammar, some headlines do, and some don't. However, there are slightly different rules for headlines, since they aren't going to be long and many times, they aren't even complete sentences.
For example, the headline "Osama Bin Laden Dead" isn't correct grammar. The correct grammar would be "Osama Bin Laden is Dead." However, it's okay, since it's a headline so small words such as "is" and "are" may be omitted to make it shorter.