The problem is the following: The plugin adds the RSS footer with two filters: the_content and the_excerpt_rss. This is fine for the full content in the feed, but not for the excerpt. The excerpt is generated getting the content (the_content filter runs, so the RSS footer is appended), stripping all HTML (including HTML in the footer), shortening it and running the excerpt filter (RSS footer is appended a second time). This is of course only a problem if you haven’t entered an excerpt manually.
The fix is to change line 160 of the plugin from
add_filter('the_content', 'embed_rssfooter');
to
add_filter('the_content_feed', 'embed_rssfooter');
I believe this is due to a bug in older WP versions where the_content was called instead of the_content_feed. It should work now for WP 2.8+ or so.