No worries here. It is difficult to keep the various modules straight, and I probably confused some folks with my use of a popular name when referring to the News module as the RSS module. In fact, when you pull down the list of modules from the Admin tools, the module is called 'News Feeds (RSS)', the folder in the DesktopModules that contains the source code is named 'News', and the source code for it is 'RSSmodule.ascx.vb'. Now, with other non-core modules being named 'News', it easy to understand the confusion.
So, puppetj, if you are still having issues understanding how to display an RSS news feed on your site, we'll keep watching for posts and try to help. The basics are pretty simple.
A simple mini-tutorial would be as follows:
Find an RSS URL, and put it into the textbox next to the 'News Feed Source'. Make sure that the URL radio option is selected.
Next, you can optionally set a translation xsl file to render the feed, or use the default xsl file shipped with DNN, which does render most news feeds with a bare bones RSSv0.91 translation. Then, update.
If your News Feeds (RSS) module displays the feed as expected, then you've got it working, if you see html rendered or get errors, then there's more work to do either with customizing an xsl file for the feed, or maybe even with permissions on your web site.
There are other twists too, like using the feed to render your own 'handcoded' feeds, or feeds that refer to syndication items from your site. Also, as said above, there are many types of news feeds available, and not all are simple RSSv0.91 implementations, so it's best to begin by reading up on what RSS is about to get a grasp of how to effectively use news feeds. The module is great for pulling in content and links from other sites, which updates whenever their content is updated in the feed. You don't have to save the actual news file to your site because it won't update in that fashion.
Hope we helped more than confused you.