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Well, I began adding a lot of feeds into my Headlines section. So the list grew rather long. I made it an inline list instead in order to display it like a sentence.. but distinguishing from different categories is not included in the module and becomes pretty hard to implement. You do however have the "weight" setting for each feed. You can put them in whatever order you prefer, you will just not be able to have separators in between categories. Maybe there is a way to add a dummy feed to act as a category heading, I'm not really sure.
What I ended up doing eventually is to create a custom block on the right column with a list of all the feeds and the corresponding links. Then I edited the headline_index template and took out the Feed listing from the top of the module index. This custom block is static, and not really ideal, but it is serving its purpose at the moment.
exampleOn the same topic, I installed the RSSFit module and have a decent feed coming out from my site. It includes recent additions from News, Booklists, and Mylinks, (and would do downloads if I used them)... I have it working to show categories for all three, which comes out pretty nice on a good reader.
Oh, I should mention that the Headlines module has an apparent bug. It displays all GUIDs as permalinks even though there is a notation of whether or not permalink=true, and in many cases it is stated false. So what happens is that you will get a lot of feeds with invalid links at the bottom, and search engines hit it a lot I noticed as well. But more importantly it fails to distinguish between posts that have more content and ones that don't. So, I removed the link from the headline template.
