As promised, here's an example xsl that does alternating item background colors. Remember, when you use it to turn off the module setting for display container or you may not get the effect you want. Experiment with the color and then you can use your container.
It's much the same as what Peter offered, just a complete xsl. In it, I do reference some <div class> tags, but these are ignored. You can add style descriptions embedded in your xsl or reference them, but that's another example. Just something to be mindful.
<?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 with alternating item background colors 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="{$link}"><xsl:value-of select="title" /></a><br/>
<xsl:value-of select="webMaster"/><br/>
<xsl:value-of select="copyright"/></font>
<hr/>
</div>
<xsl:apply-templates select="item"/>
</xsl:template>
<xsl:template match="item">
<xsl:variable name="item_link" select="link"/>
<xsl:variable name="item_title" select="description"/>
<xsl:variable name="ikeyinfo" select="description"/>
<!-- <xsl:variable name:"idTitle" select="concat(substring-before($ikeyinfo,';'),title)" -->
<div>
<xsl:if test="position() mod 2 != 0">
<xsl:attribute name="style">background-color: #F5F5F5</xsl:attribute>
</xsl:if>
<div class="IssueSubject">
<a href="{$item_link}"> <xsl:value-of select="title" disable-output-escaping="yes"/></a>
</div>
<div class="IssuePubDate">
<xsl:value-of select="pubDate"/>
</div>
<div class="IssueInfo">
<xsl:value-of select="substring-before($ikeyinfo,'<br>')"/>
</div>
<div class="IssueText">
<xsl:value-of select="substring-after(description,'<br><br>')" disable-output-escaping="yes"/>
</div>
</div>
<hr/>
</xsl:template>
</xsl:stylesheet>