If you're doing "intelligent aggregation" and wanting the content to live within the context of your site, as you say, I think you've got a copyright nightmare ahead of you. There are several sites out there that do nothing but pull together AP content and smother the pages with ads -- I think a few of them are making enough profits to cover the outrageous cost of the AP feeds.
I'm not trying to discredit your idea -- just hoping to get some more details. I happen to work in the news industry (on the software side, but am still exposed to the mess that is news) and find ideas in this area intriguing.
