What even stranger is that the upzipped .gz file and the sitemap.xml file are identical. Ran them thru KDIFF3 and there is no difference, unless I’m missing something.
Ideas as to why Google rejected?
Problem solved. Ran the address through http://validator.w3.org/ to find lines 1 and 2 blank. Checked all .php files in theme until I found the problem, extra blank lines after the final /> in the functions file. Removed blank lines and sitemap.xlm now works fine. Just wanted to report back in case any one else has same problem.
Looking forward to playing with latest version, thanks Yoast for making an awesome, useful plugin and giving it away for free!
