I have been trying to do this for a long time and it's so stressful!
Can you please help me?

Me and a few other girls have a blog together called 365 Creative
Creations, what we do is create a creative project every day for the
2011 year. We each have our own blog and we've been trying to put a
collage together for each day but it's taking way to long. SO instead
I wanted to look into RSS but I have no clue how it works and
everything I read on it doesn't make sence or doesn't work.

I know a bit of html coding & how to edit in HTML mode but that didn't
seem to work.

Can you please help me put this together? Everyday we don't put this
up, our team blog looks bad.

This is the team blog --> http://365creativecreations.com/

and these are the blogs we need the rss feed from {and if possible,
can we grab only posts with the category 365 Creative Creations?? from
these blogs??}

http://www.abbyinwonderland.com/

http://www.antscreations.com/

http://www.dizzycoyote.net/

http://www.foreigncreation.com/

http://www.faedust.net/

http://creativebalorina.com/

http://www.projectyara.com/

It is possible to have feedList pull in a feed from each of those
sites - even from a particular category from each site (assuming each
site uses wordpress since it can provide a category specific rss
feed).

However, I'm not sure feedList will do exactly what you want.
FeedList won't create posts on your main site.  Instead it can do two
things.  1. It can display the feeds in the side bar (or footer) of
your site  OR it can display the feeds within a specific post.

I think #2 is the closest option to what you want to do but it won't
really work in the way you hope.  Sadly, you will only have one post
that just has it's content change everyday when the feeds coming into
that post change.

What you really need is something that pulls in the newest post from
each feed on a daily basis and then creates a new post in your main
site if that post doesn't already exist in your main site.

Sadly, feedList doesn't do that and isn't really setup in a way where
I could quickly add that functionality - sorry.

Bill