I find some "real" feeds won't be excepted, I can't see what wrong with this one, but get the error: The Feed URL you supplied is not valid XMLhttp://bangkok.coconuts.co/rss.xml
try this feed,you should use feed burner to make your feeds work
the feeds need to be .rss I think
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http://feeds.feedburner.com/OceanFacts Yes that feeds works, I have tested 100's of feeds many work, some you get just the headline no content, others just get 4 lines of content with "read more" link but no link. I not sure if it's the feed or the plugin that is restricting content, I think a bit of both. but less feeds work in 2.1.8 than 2.0.8 why don't know.
I can't say about this plugin, but my magpie feeds pulls all info that is actually contained in the feed. It needs to be a good feed only .rss feeds work. Which is why you should use feedburner to make feeds from your sources, it makes sure it is a valid feed.