i didn't do anything with the \' problem. i don't know what is causing that. i looked at your feed and it looks just like the one i use from yahoo. however, i do not have that problem in my code.
i looked and this seems to be the culprit
PHP Code:
$rss_title = mysql_escape_string($rss_title);
$rss_description = mysql_escape_string($rss_description);
because in the function to insert the post it uses addslashes() ... so i think it is putting \\' instead of \' like it should. then it removes the \ and leaves the trailing \' ... i have just uploaded a new 1.22 try that one. if you don't want to download it. all i did was remove those 2 lines of code from the rss_update.php file.