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This wasn't on his own personal time. It was on the http://www.on10.net site that's owned by Microsoft (and supported by such).
=) Glad to see no one is making stuff up
Atom and RSS both have their own advantages and disadvantages - Atom is an agreed internet standard and has less ambiguity in its specification, whereas RSS is simpler and more ubiquitous. At the end of the day, it should not matter which format you choose.
Seriously, it's "Deal with a rabid wolverine or a pack of insane weasels". Not sure there's a good choice, but the IETF tends to be more open to new ideas.
When Microsoft is producing feeds (MSDN blogs) they include HTML in the titles. When they're consuming feeds (the IE7 aggregator) they assume there is no HTML in titles. As a result their aggregator is unable to process their own feeds correctly. You'd think that might cause them some concern, but apparently not.
Recently the RSS Board starting making an attempt to address this ambiguity (and a number of other issues) when it was rather forcefully pointed out to them that the RSS roadmap did not allow for such clarification. In the words of Dave Winer: "it [the RSS spec] *has* to remain ambiguous, because the roadmap says so." This is, of course, for your own good. I'm now sure how it's good for you that your software doesn't work, but apparently it is.
Is this RSS engine part of Vista or part of IE7? I'd guess that the RSS of IE7 (or the RSS engine/platform) will eventually become de facto standard and other aggregators will follow it.