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I'm using feedwordpress which I bvelieve is similair, but not the same.
Problems I've found is that it will sometimes update an old post instead of create a new post. I think this is something wrong with the sponsor feed though (changing the content but leaving some "key" values the same). That's a guess.
Duplicate content is a concern from a SEO perspective -- I attempt to tackle that with some automatic word substituations so the text will not be *identical* (but admittedly extremely similar) to other blogs using the same feeds.
So far it seems ok.
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