Bloglines. Much to my surprise since, I'd assumed Reader was much better than Google Reader. Recently though I've been using Reader for a research project. Somethings work well, but it's suprisingly buggy for a product that Google's been pushing for months. (It's still a "Lab" rather than beta project.)
Tags, for example, weren't working on posts today, and they don't seem to work at all for feeds. You can share individual articles if you like, but you can't share your entire subscription collection the way(s) you an with Bloglines.
On balance Bloglines still has the edge, with one big caveat that some of my subscriptions seem to update erratically; quiet for a week then fifty articles all at once.
Update 7/13/07: I came across a more extensive comparison with a similar, but more detailed, conclusion. Neither will create a feed from multiple feeds, but I think Yahoo Pipes may do that. I should experiment with named Pipes...