Always listen to your friends, especially when they are technical geniuses. AC warned me that RSS Bandit had issues, and sure enough after a few days of running smoothly, Lamont Harrington suddenly became an Office 12 UI expert and sounded eerily like Jensen Harris. Bandit was tossing feeds in any folder it felt like. So I took the advice of Maurice Prather and got intraVnews up and going instead. So far, so good. And it integrated nicely with Outlook which makes me a happy woman.
I suggest you check it out: http://www.intravnews.com/