Sirisha,
First, you are pretty close to using the current module correctly. Though, you need a bit of help with understanding how to choose an appropriate URL for the newsfeed source. Google does have newsfeeds available, but the URL that you are using is not a valid newsfeed source, but actually Google's URL for their search engine. A example Google newsfeed source would be:
http://news.google.com/?output=rss
However, that's not the end of the story, unfortunately. Newsfeeds in the real world don't always follow RSS specifications, so DNN defaults to using a stylesheet that works in most cases to display some very common and standard rss elements from the RSSv0.91 spec. That's the stylesheet you used fo the other setting. In most cases, this stylesheet will transform a newsfeed correctly, but sometimes it does not. So, just be aware that as you gain more experience with consuming RSS feeds that you will need to pick up a bit more knowledge of XSL transformation.
I can't tell from what you gave us, whether the error you are getting is coming from simply specifying a URL that is not a feed or not, I don't have my test site up at this point to confirm (sorry). However, try making that URL change, and see what you get. Then, let us know if it gets you started. If not, then we'll need to know how you are hosted, and some other specifics, which we can address at that time.
BTW - while on Google, you can always do a search for RSS feeds to find appropriate URL's to use. You could even pick one from the DNN site itself to test. Also, if you are using IE7 or Firefox, you can go to most sites, which will auto-detect if a feed is present, click the new RSS feed logo, and bring it up on your browser. Another way to check a feed URL w/o using DNN is to simply type the url in the browser's address textbox, which should result in the display of the feed, either in xml format or in a standard transformation depending on your browser setup.
Anyway, good luck, and let us know how it goes.
Cheers!