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The animated images worked fine for me in Mozilla 1.6, & Firefox .8
The headline feed will default to a bulleted list in Mozilla like browsers. Images for newsfeed (RSS replacements) will work only for IE.
Whether this will get fixed in a future release remains to be seen. Personally, I like the bullets for the headlines better then the RSS image.
Sorry if I'm a little off the mark on your comments about the images for RSS Headlines.