Just learning about this via youtube but could not find answer to my question of how reader knows there is an update.
Is it like a Push in blackberry?
RSS is a file format source and doesn't actually know anything about where it gets the entries from. The answer really is: "how can an http request get only the newest results from a server" and the answer is Conditional GET source. Http also supports Conditional PUT.
This is an article about using this feature of http to specifically support rss hackers.