Feeds Image Grabber (FIG) is successor of FeedAPI ImageGrabber, an addon for Feeds module, which grabs image for each feed-item from their respective webpages and maps it to an image field in the node created by Feeds (Node Processor).
[Google Reader (with thumbnails) can be imitated on a Drupal site by using Feeds, Feeds Image Grabber, FileField, ImageField, ImageCache, ImageAPI, Views and Voting API module (http://goo.gl/J5MJg)]
Features
Automatically downloads and attaches image to the node created by Feeds module.
Configurable XPath of the desired image location on the webpage of the feed item on per feed basis (using element's id or CSS class).