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Pipes is a hosted service that lets you remix feeds and create new data mashups in a visual programming environment
So what that basically means is you can, for example (something I just built using it), take 4 RSS feeds on a similar topic, condense them into one, remove duplicates, re-order based on a rule-set of your own creation, and dump the output into a new RSS feed all of your own creation (in terms of delivery).
For those interested in this kind of thing, it has a really quite stunning Java/AJAX user-interface. Full drag and drop building blocks for building RSS/XML based content feeds.
Call me stupid or dumb .. but I could not figure this thing out.
You're not alone. I think the spartan "web 2.0" language in the instructions fails this product.
That said, I'm intrigued by the mystery of a seemingly powerful web tool that I can't figure out. It reminds me of the first time I opened Macromedia Flash. I know what I want to make but . . .