Follow up to the follow ups...please disregard, I am an idiot. It was a cache issue. I cleared my cookies and those private posts no longer showed on RSS.
And forgive the inconsiderateness, I never said thank you for this wonderful FREE script :-)
I found a small problem with the RSS. Viewing my site normally, private posts are hidden. If I view the feed in a reader, private posts are not shown. However, if I click on the standard Wordpress-provided "Entries RSS" link, it shows ALL posts.