I'm looking at the feed and I see the reason for your issue #2. The link being created for items is incorrect for each item in the feed. Every item in the feed is being created with this link:
http://www.dotnetnuke.com/News/Announcements/tabid/703/Default.aspx
That link does bring you to the page where the 'news' briefs are listed, then you would need to click the 'read more' link to see the full story. I guess, it's a question of design as to where to direct the user. However, in my opinion, the link for an item should redirect to the full story, not the summary. Afterall, you've already read the summary - haven't you?
Looking at a specific item entitled 'Announcements -DotNetNuke Announces OpenForce Europe '07 Conference' , the link to the full story should be:
http://www.dotnetnuke.com/News/MediaReleases/DotNetNukeAnnouncesOpenForceEurope07Confere/tabid/1108/Default.aspx
Now, maybe, it's the case that the design is causing the many updates you are seeing, but I'm not sure just yet. I'll have to take a better look at the code, which I don't have here at home. I let you know what I find later. Maybe someone else can take a look to see if they can help, before I get a chance to review it.