Pretty sure the Dynamic Lists need to be just IP/netmask, one per line, which means RSS won't work (too much XML crap in the way). You'd need to do all the RSS downloading, processing, and whatnot to generate a text file of the proper format for use with Dynamic Lists on a separate server, than make that file available for download from the firewall. There's also a limitation (at least in PanOS 6.1.x) on the number of lines in a Dynamic List, so if it's longer than that, you need to manually split it into multiple files, and configure the firewall to download each one separately. We have a process that grabs a "active hack attempts from these IPs/subnets in the past week" list from the Internet, massages it into the correct form, and splits it into multiple files. The firewall is configured to download up to 9 files, add them all to a group, and use that group in the Security Policies.
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