Try this
$found = preg_match("/img src=\"([^\"]+)\"/", $content, $match);
if ($found)
{
echo '<div id="image"><img class="feed-item-image" src="' . (string)$match[1] . '" /></div>';
}
Maybe problem in your css file and feed-item-image class. Can you just try
"<img src=\"" . (string)$match[1] . "\">";
instead of
'<div id="image"><img class="feed-item-image" src="' . (string)$match[1] . '" /></div>'