Release notes:

This Plugin creates new blog nodes from RSS feed items

Currently it has been built only to work with Groups and still needs some work but thought I'd post up what I've done so far

TODO
Set up cron hook
Set up Edit form
Set up Delete action
Set and Check over Permission settings

Extra
Add in various user settings/options
Tidy up Code
Tidy up Views/menu items
Alter to work for Users as well as Groups

Prerequisites (you need to install and enable these plugins to get it to work)
http://community.elgg.org/pg/plugins/antifm/read/230708/blogextended-132 (attaching to group must be enabled)
http://community.elgg.org/pg/plugins/costelloc/read/37480/simplepie-feed-integrator
Group plugin (comes with core)