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My developer figured it out! He changed the feed to an atom feed and it scraped the image. Here's how one of my feeds are set up. It is pulling from a keyword search of "washington county." The ips=300 is contraining the image to a width of 300, so you can adjust that to whatever size you'd like. Just make sure you also add the *|RSSITEM:IMAGE|* to you RSS code where you want the image to appear. 

https://observer-reporter.com/search/?k=%22greene%20county%22&t=article&nsa=eedition&f=atom&ips=300&altf=mrss