Friends RSS Aggregator (FRA) WordPress plugin was built to enable a WordPress installation to have a livejournal.com-like friends page. By creating a group of friendsâ€™ weblog links with RSS URIs in a particular link category, a user can display an aggregated list of posts by date or name. The word â€˜Friendsâ€™ in the plugin is also a bit of a misnomer since the plugin is by no means limited to aggregating just friendsâ€™ weblogs; FRA allows aggregation of any group of links (that specify RSS URIs) in a link category.
The plugin was developed for WordPress 1.5.x but let me know if it works for 2.0.
Download and installation information at the project page.