I noticed a link to KlipFolio from Serence on the weblog of Robert Scoble.
I got the impression from the post it was a new RSS aggregator, and that attracted me to download it and check it out.
But I was mistaken, it seems to be a lot more than that; from the Klipfolio support forums:

KlipFolio does so much more than simply read RSS that we are worried users might confuse us with other RSS readers.

It's more like a notification toolbar you can extend to monitor whatever you like, whether it's something on the Internet or on a local network:

Klips can now monitor any network resource via TCP/IP, or monitor any local file or network directory via the file:// protocol. For example, a Klip can monitor an accounting database over a local network for changes, a shared network directory for updates, a remote directory via FTP, or a POP3 server via TCP/IP for new email.

By installing "Klips", you add extra modules to the tiny Klipfolio toolbar that notify you when new items are added or modified.

The default install includes Klips to monitor your Hotmail inbox, Google News queries, stocks, weather and feeds.
It doesn't work as a feed reader very well for me, you must add each feed individually as a module, which would mean hundreds of modules for me. But it does work well if you have just a few important feeds you want to keep an eye on.

The installer to try out Klipfolio is only 580Kb and it's free, plus there are hundreds of different Klips to suit everyone available at Klipfarm.com, so it's well worth checking out.

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Added
I tried my hand at making a Klip for the IGNIQ.com news feed.
Seems to work ok, it's basic, just grabs the latest headlines from the RSS file and refreshes every 150 minutes.
To create a Klip for your own site you basically need to create your own XML file from a template and make a banner and icon for the Klip, check out this guide: Klip Development Guide

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More info:
· Download Klipfolio 2.6
· Announcement of Klipfolio 2.6
· Wired News - A Scan of the Headline Scanners Includes a piece about Klipfolio
· Klipfarm.com - Download extra Klips
· Scobleizer: Microsoft Geek Blogger