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Your feed appears to be encoded as "ISO-8859-1", but your server is reporting "US-ASCII"
Having read the help file, I'm still lost.
The apache headers + first few lines of the file header are:
HTTP/1.1 200 OK
Date: Mon, 24 Apr 2006 23:00:56 GMT
Server: Apache/2.0.51 (Fedora)
Last-Modified: Mon, 24 Apr 2006 23:00:01 GMT
<?xml version="1.0" encoding="ISO-8859-1"?>
<!DOCTYPE rss PUBLIC "-//Netscape Communications//DTD RSS 0.91//EN"
you need to explicitly specify the character encoding with an HTTP header rather than just in the XML prolog. Dependent on your setup, you can do this via server-side scripting which is generating the RSS file, or via a .htaccess file for Apache.
AddType text/xml;charset=iso-8859-1 xml
This is because you are delivering the XML file via HTTP, whose character encoding rules take precedence other the charset defined in the document.
I don't quite understand it (ok, I'm trying NOT to), but it works.