The image in your 'itunes:image' tag is at http://www.lcimanhattan.com/LCIManhattan.jpg
This image is 254 x 140 px. The minimum size requirements is 1400 x 1400px, and the filesize must be smaller than 500kB.
There is a further issue: when you enter the URL of your top episode's media file in a browser it downloads instead of playing in the browser as it should do. This means that the iTunes Store cannot stream it and consequently the feed will be rejected. (They evidently hadn't got this far because of the image).
You need to ensure that the server hosting your media files is set not to force a download. You also need to ensure that the server can handle 'byte range requests' - the method used by iPhones to access the files. Testing in Teminal suggests that it doesn't, but this may be because of the forced download. When you have sorted out the server, and confirmed by entering the URL in Safari or another browser that the file plays and not downloads, post back here and I'll test it again. You should not resubmit the feed until you are sure you have all these issues sorted out as each time you resubmit and get rejected you will probably have to change the title to get round being told it's already been submitted (this is a bug in the process).