So I'm just starting to use NewsGator for reading RSS feeds and so far I'm really impressed. I use Outlook to manage a lot of information and having the RSS feeds come into Outlook folders is key for me.
I haven't really tried that many alternatives, but it's surely the best I've seen so far. I think it takes us one-step closer to having an tool that makes RSS easy for the non-geeks out there.
If you're not sure what RSS is, go here.