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Feed Images Rated 5 out of 5 stars
It isn't that Feeds don't show the image, the files need to be named with embedded "s if the Feed name contains spaces, for example I have "Hacker News".gif which is just the favicon.ico from that site and it works. What would be nice is if a feed could override the name of the sender of the feed item.
Even nicer would be support for gravatars.