Aggregation is possible with the News v4.0.1 module. Some folks have reported issues with using internal syndicated content, though. The other gotcha, is the module is pretty strict with enforcing RSSv2.0 specifications, which must be done to be able to aggregate feeds. Feeds are validated before being being rendered, and many news feeds are not respecting the RSSv2.0 specification, so those will fail. While I've seen Atom feeds fail, as well. So, bottom line the best approach is to use a test page on your site to check a newsfeed before putting it into production. Take a look at the top post on this forum about the many feeds that are failing to 'download' and be rendered.
The other issue reported is performance. Adding aggregation adds a performance hit due to the need to download the number of feeds in the module. Each feed will be tested for updating depending on cache settings, and processed before rendering. You can uncheck the 'Use Ajax' checkbox to improve this performance a bit, but in the end you will see some time lag as the user hits the page where a module with aggregation is setup. I would not recommend using the module on a home page for that reason.
Lastly, if you are using the older News v3.x module, if you update to the new module, your existing feeds will be updated to use the new methods in the newer module. So, if you are using custom XSL's to present them, these feeds will probably not work. So, again, test, test, and test before using the News v4.0.1 module.
As for an example, I don't have a public web, so I cannot give you any example.