Yes it's using RSS feeds and yes it's possible to add more newspapers, but it takes a little knowledge of coding. A new newspaper requires typically 50 lines of python code. If you don't mind getting your hands dirty I'd suggest you download the libprs500 development environment and plunge in, I'm always happy to accept patches.
On windows you cant have two sets of drivers for the same device. So you can have either the libprs500 drivers or the connect drivers. Uninstalling the drivers of either package will prevent it from communicating with the device, but will not prevent its other features from working.