Check out my reviews for Viigo (Free) and PocketDay (34.99) here
RSS | BerryReview
There is also PicoNews which is free but it seems development has stopped since 2005.
Oh yeah and if you upgrade to a 4.2 device such as the pearl or 8800 there is the homestyle RSS reader that works as well as the best if you just browse to the rss feed in the browser and create a bookmark and then set the bookmark to automatically download and refresh.