u should try reading the some tuts online.,
what i know is.,
sponsors giving rss feeds can be used in many ways.,
like to create blogs,
xml feeds to feed to your tubes
i dont know how to create those feeds., but whenever u buy or download free script like wordpres, tube script, most of them has rss ffiles., they auto generate the feeds for users.,
so users put these feeds in the rss reader s/w, so whenever site gets updated, the feed gets updated and user knows, so he comes back to the site and check specific content.,
e.g.
here are my site's feeds
http://www.xxxtreme.com/rss.php?location=home
updates every day with new videos.,