The Google Reader app for Android has all of the functionality you could hope for. You can choose to look at all new posts or just posts from one site at a time. You can even play most videos right from the app (usually requires Adobe Flash Player). Everything you do on the app syncs with your Web-based Google Reader account, pretty much instantly.
If I've been away for a while and I have hundreds of new posts waiting, I actually prefer to use this app over the Web version. I find it so easy just to scroll through the headlines only, star the ones I want to read later, and press 'Mark all as read' to eliminate the clutter instantly. Later I can go to my desktop to read the starred items on a full-size screen.
This app is a great implementation of something that is normally Web-based. It's fast, it's intuitive, and it's nicely laid out. If you do a lot of online reading, you definitely want an app that works with Google Reader. That said, other choices are out there, such as FeedR and Pulse, which some people would argue offer more features. In fact, if the Google Reader app allowed users to download feeds (with images) in the background to an SD Card and then read them later offline, it would be nice. Some other readers let you do that, and I'm hoping Google adds such an option.
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