Odd it is working for me. I also tested it in reading mode, and the paper view was rendered along with the author photos. Is it something else other than reading the feed that is broken? (like clicking on the links)
I am running a slightly newer build (you should receive the update soon), but don't know of anything changed in it that may have helped parse this feed.
What version of iOS are you running? I am running iOS 4.3.2