Currency characters in the Neowin.net RSS feed are garbled no matter what the currency is: http://feeds.feedburner.com/neowin-main. It doesn't just happen with Pound and Euro. The Dollar character displays garbled as well.
By the way, great application! I tried it a while back but couldn't get it working through my work proxy server. I gave it a go again about a month ago and it has been running fantastic.