It's difficult to know exactly what you need without seeing the newfeed and xsl you are using.  Basically, the xsl file is what you need to alter to change the appearance and action.  For example to open a link with a new window, you would have to change the xsl line that includes some code like this:

<a href="{link}" target="_main"><xsl:value-ofselect="title"/></a>

To this

<a href="{link}" target="_new"><xsl:value-ofselect="title"/></a>

As for getting rid of a line between elements, it really depends on the xsl being used, but generally, you look for a line that has some code like this:

<hr>

and remove it.  If you are talking about the container line above the feed, that's a skinning question, sorry.

Hope that helps.