If you use "description" then you will get the image problem you saw. Use content:encoded and you'll get the Title and the More link. Those are kinda your two choices. Well, choice number 3 is to use a different rss application to feed your site. I think there is either an article or modification to do the feeds on your site a different way. Well, there is also option 4 - modify the external.php file to handle google rss feeds.
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