I had got the same problem when I updated to WordPress MU 1.3.3.
I have solved that issue updating the wp-includes/rss.php with the last version of MagpieRSS. Then, on wp-includes/widgets.php on line 967 I have changed this code:
$title = "<a class='rsswidget' href='$url' title='" . attribute_escape(__('Syndicate this content')) ."'><img style='background:orange;color:white;border:none;' width='14' height='14' src='$icon' alt='RSS' /></a> <a class='rsswidget' href='$link' title='$desc'>$title</a>";
With this other:
$title = utf8_encode("<a class='rsswidget' href='$url' title='" . attribute_escape(__('Syndicate this content')) ."'><img style='background:orange;color:white;border:none;' width='14' height='14' src='$icon' alt='RSS' /></a> <a class='rsswidget' href='$link' title='$desc'>$title</a>");
This the wp-includes/rss.php code:
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