"Initialization failed. You are running Awasu 2.4 but your data files are from 2.3"
This problem has happened to a couple of people including myself. The simple fix is documented here:
I can't really help you with the "items are not being marked as read", but I'll ask you a couple of questions to help clarify the problem.
Immediately after marking items as read, do they still show as unread, or is it only after updating the feed that the items show as unread?
Does this happen to all feeds or just some feeds?
I'm trying to determine if the problem may be with a specific feed source.
Your Awasu Evaluation
Besides all of the great features of Awasu, which are not present in most other feed readers, you'll also get great support. The developer, Taka, is very accessible via email or the forums.