This is not only a swedish problem. All feeds with other characters than standard englich characters (german, french, polish, swedish or what you want) are not working with the standard saxparser.php.
The hack is in row 44 (not from me) instead of: $this->parser = xml_parser_create('UTF-8'); Hack: $this->parser = xml_parser_create();
I think this makes the feeds displayed with ISO-8859-1 code as default.
I was happy whith the "panic" warning. In Germany several sites have been cracked. Because of my hoster, I have no possibility to set register_global off and at least 7 people came to my site on friday with the search string "allinurl:/ag*****/" in Google, before I removed the modul. So it is very easy to find sites to crack.