hmm that is weird. Maybe something with Google Reader caching. It seems to be working now and the dates seem to be correct.
That is the problem even http://www.yoursite.com/feed/ defaults to rss1.0 ???? why is it doing this?
Regarding #2: Looking at the source of your page, the alternate is pointing to the /feed/rss2/ link, not the rss link. Perhaps you’re viewing from the browser cache?
Like I mentioned in my question I had to hard-code /feed/rss2/ into the header template for this to work – it was defaulting to the rss1.0 feed even though I was using bloginfo('rss2_url')
AdBlock in Firefox will prevent the Rich Text Editor(WYSIWYG Editor) from displaying properly – make sure to disable this on your WordPress site.