The feed which SharePoint Generates is here (I copied it to pastie because I thought it would be clear there)

However, the xml file comes with a style sheet tag. How do I remove that? Does SharePoint always generate that?

Due to the presence of that tag, I am unable to apply another style sheet of my own using the XML WebPart.

EDIT: I don't think the issue is related to the style sheet. If I copy the xml and paste it in the "Xml Editor" of the Web Part everything works just fine. If I provide the URL, that is when I do not see any data.

This is my XSL file

<?xml version="1.0" encoding="ISO-8859-1"?>
<xsl:stylesheet  
  version="1.0" 
  exclude-result-prefixes="x d ddwrt xsl msxsl" 
  xmlns:x="http://www.w3.org/2001/XMLSchema" 
  xmlns:d="http://schemas.microsoft.com/sharepoint/dsp"
  xmlns:ddwrt="http://schemas.microsoft.com/WebParts/v2/DataView/runtime" 
  xmlns:xsl="http://www.w3.org/1999/XSL/Transform" 
  xmlns:msxsl="urn:schemas-microsoft-com:xslt">


<xsl:output method="html" version="1.0" encoding="iso-8859-1" indent="yes"/>

<xsl:template match="/">

<xsl:value-of select="count(rss)" />
<xsl:value-of select="count(rss/channel)" />
<xsl:value-of select="count(rss/channel/item)" />

<xsl:for-each select="rss/channel/item">
<xsl:value-of select="title" />
</xsl:for-each>

</xsl:template>
</xsl:stylesheet>

Pastie link