I checked the file is correct, there is no space first in the template.
I cleared the cache, re generated the files and its the same keeps putting in a blank space at the start.
{* Script Version 7.5.7 *}
<?xml version="1.0" encoding="ISO-8859-1" ?>
<!-- RSS generation done by UBB.threads(tm) on {$generated_on} -->
<rss version="2.0">