Google has just released Reader for Android which I've installed and have been using today. To date, I've been using Beyond Pod which is a pretty polished application in itself, but haven't used that to sync my Google Reader items.
Reader for Android supports the similar features that the web version has as well, such as starring, liking, and sharing items. The UI is clean and simple and the font size is nice and large, although, a preference to adjust it would be nice.
There is also an option to use the volume key to move between the items in addition to two soft-buttons to navigate up and down. One nice feature is that in landscape mode the buttons move to the right hand side and appear vertically instead of horizontally.
There's only one podcast that I listen to, Rebooting the News, and I currently don't have any unlistened podcasts to test to see how it handles those entities.