The Google News Help forums has a couple of reports that Google News RSS feed is not working properly. Some are complaining they cannot subscribe to Google News searches and some are complaining they are not validating properly.
I know that my tests seem to work just fine and I am able to subscribe to Google News searches via Google Reader. However, when I plug in those RSS URLs into FeedValidator.org, the feeds are not valid, according to them. Here is a sample showing the errors of the Google News rss searches.
Forum discussion at Google News Help.