I use Google Reader with the URL http://dummyspots.com/?feed=rss2 and I’ve never had any problems. I clicked on Firefox’s RSS icon in the URL bar and it added to Google reader just fine (as did the subscribe button in the upper left). I copied the URL that you say gives problems and manually added it to Google Reader using the subscribe button and it is working just fine and shows recent posts (including this one).

I can’t replicate your problem, not sure what to say, sorry.

I know that Blogger changed to make redirects to feedburner smoother, but I can’t think of anything else, sorry.