If you are using MS VWD 2008, it is possible to make your own changes to the News module. Open up the project in VWD2008, and add the references for the following dlls located in the folder where you put dnn \Website\Bin\:
DoteNetNuke.dll
DotnNetNuke.WebUtility.dll
Microsoft.ApplicationBlocks.Data.dll
Then, try a quick rebuild before making any changes. If your setup is acceptable, the project will rebuild successfully, then the module will be ready for more changes. If you have errors, there may be other references to add, but those are the only ones I needed to add.
After you make your changes, just replace the resulting DotNetNuke.Modules.News.dll in your Website\DesktopModules\News\bin folder (or wherever your source is located), into the \Website\Bin folder.
The easiest fix is to relax the constraints that are causing folks so much trouble with their existing feed sources.