I just ran into this RSS title encoding problem myself. I choose to double encode the title elements. Meaning encode your HTML first then do the XML entity encoding. Unfortunately the RSS 2.0 spec won't help you; because it doesn't say what it can or can't be. I don't allow HTML to be included in any of our RSS title elements. However, I do allow basic characters such as &, < etc… to be included in the title element.
So when I encode the following:
AT&T
It will look like this in the RSS document.
AT&amp;T
BTW, FireFox and IE Readers don't support double encoding. As RSS readers they suck anyways so why support them? Maybe they will change there evil ways.
