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Aside from the whole content thieving bastards issue, let me answer your question.
I've done some research and design work on such systems for two clients.
What you do is but a nntp feed from one of the major providers,
the same guys that your local ISP buys news feeds from.
That'll run you $200-$800 / month.
Then you spend $1,000 on custom programmingand you've got
yourself a kickass "web to news gateway".
Then you spend another $1,000 with a good lawyer who knows the field
so you don't get in serious shit for copyright infringement.
There's one such lawyer in Alabama who knows all about these sites.
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