I noticed that RSS Bandit 1.7 Beta was released recently. Unfortunately for me, when I tried to upgrade on my work computer, it failed horribly. After clicking OK to the dialog, the Bandit loaded, but none of my feeds were loaded.

I started looking in to this and noticed the DirectAccess.29741.subscription was looking pretty empty, but that the contents looked similar to the old subscriptions.xml file. To test my hypothesis, I added a feed to RSS Bandit and checked the results in the DirectAccess.29741.subscription file. Sure enough the feed was there.
I shut down RSS Bandit, then deleted the DirectAccess.29741.subscription and copy/renamed subscriptions.xml to DirectAccess.29741.subscription. Starting the app again, my feeds loaded properly. I did a diff on the DirectAccess.29741.subscription file and noticed a few xml attributes were added or rearranged, but otherwise the file was intact. So far so good.
I also found that the installed replaced my custom RSSBandit.exe.config in the Program Files directory with a new version that no longer contained my settings. I fixed that up and everything was hunky dory. I am posting this in case anyone else runs into the same issue.
RSS Bandit has a way to synch feeds between computers, but it doesn't work for me. Instead I copy the entire app data directory between work and home. This works the way I like it to. Their synch fails in that on my home computer, my unread items at home can get out of synch with work. Unfortunately this is not a bug, and instead a feature.