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What do I need to do to change it to version 2.0? And do I really need to make it a later version, ie. what are the benefits?
Also have an xml feed which is virtually identical to the rss file, just with some extra formatting stuff for the xml.
This should answer your questions.
I work for a major site which has had RSS 0.91 feeds for 18 months, and serves out millions of files each month. I've gotten exactly ONE request for an upgraded feed.