Allright, I used your OPML file without any problem. It appears to be fine, format-wise. Now, something that occasionaly happens is that there is a Cache file that gets read, and maybe that's confusing things, or it could be that you are not placing the file in the proper location, or specifying it correctly in the settings.
Here's what to try:
1. Go to your website folder, and look for a \Portals\Cache\OPML folder. If that's there go ahead and delete the OPML folder, if you feel more comfortable just move it somewhere for safe-keeping. I just restore it from my Recycle Bin, if things go south, anyway.
2. Place your OPML file in the Website folder
3. Specify the location as http://<myisp>/<mysite>/<myfile.opml> and update.
For example, my test site is on localhost, and my portal is named dnnv040505, so I specified the location as:
http://localhost/dnnv040505/BellNews.opml
Then, I click update and it displayed without issue.
Try those steps and let me know how it goes.
Cheers,