I'm not able to get this feed to work as a source, it gives me an error message, but it is a valid feed because it comes into Feedly no problem. I'm a bit of a beginner at all this, but I was able to set up a very simple yahoo pipe so i think my basic basics are okay.
Use a fetch data module instead, and can even enter 'channel.item' as your path to item list to directly get your content.
Why, you ask, as fetch feed should work fine? Your rss feed is badly formed, as your error message says, and I believe it's the additional first line (empty) line. When you use fetch data instead pipes won't be as cautious on the format, and you can then extract your content.