There are some issues with your xsl. The example really doesn't 'do anything' with the items you select from what I see. So, I'm not sure what you used to test this xsl against the feed. I use Xselerator from Marrowsoft.
I used the feed with a simple xsl I use for my RSSv2.0 feeds. I might have to tweak it around a bit to get what I want, but it's a good starting point. If you are new to xsl and rss, take a look a some other posts on this forum for some tutorial sties that will help with understanding the basics.
Try this sample xsl with your feed on your site. It should work, and you can tweak it to get what you feel you need in terms of appearance and such.
Cheers
<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet version="1.0" xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:output method="xml" omit-xml-declaration="yes" indent="yes"/>
<!-- RSSv2.0 Simple XSL Example by Phil 'iwonder' Guerra -->
<xsl:template match="/">
<div>
<xsl:apply-templates select="rss/channel"/>
</div>
</xsl:template>
<xsl:template match="rss/channel">
<xsl:variable name="link" select="link"/>
<xsl:variable name="description" select="description"/>
<xsl:variable name="image" select="image/url"/>
<xsl:variable name="idesc" select="image/description"/>
<xsl:variable name="ilink" select="image/link"/>
<xsl:variable name="iwide" select="image/width"/>
<xsl:variable name="ihigh" select="image/height"/>
<div class="head">
<xsl:if test="$image">
<a href="{$ilink}" title="{$idesc}"><xsl:value-of select="ilink" /></a>
<img src="{$image}" height="{$ihigh}" width="{$iwide}" style="float: left; margin: 2px; border: 0px;"/>
</xsl:if>
<font size="-2"><xsl:value-of select="description"/><br/>
<a href="{$link}"><xsl:value-of select="title" /></a><br/>
<xsl:value-of select="webMaster"/><br/>
<xsl:value-of select="copyright"/></font>
<hr/>
</div>
<xsl:apply-templates select="item"/>
</xsl:template>
<xsl:template match="item">
<xsl:variable name="item_link" select="link"/>
<xsl:variable name="item_title" select="description"/>
<div class="subHead">
<a href="{$item_link}"><xsl:value-of select="title" disable-output-escaping="yes"/></a></div>
<font size="-2">
<xsl:value-of select="description" disable-output-escaping="yes"/></font><br/>
<font size="-3">
(<xsl:value-of select="pubDate"/>)</font><br/> <hr/>
</xsl:template>
</xsl:stylesheet>