Untested, but you had a few variable issues. Try this one:
<?php
/*
Plugin Name: Featured-Post
Plugin URI: http://dailytestimony.net/plugins/featured-post.php
Description: Selects randomly one of the blogs provided and gets the most recent post from it
Author: Daily Testimony
Author URI: http://dailytestimony.net/
License: Creative Commons Attribution-Share Alike 3.0 United States
License URI: http://creativecommons.org/licenses/by-sa/3.0/us/
Version: 0.1beta
*/
function featured_post(){
global $wpdb;
$featured_blogs = array(1,2); //Update this array with the ID's of featured blogs
srand(time()); //Do not change this
$random = (rand() % count($featured_blogs)); //Update this with the number of entries in the array above
$thispost = $wpdb->get_results("SELECT id FROM " . $wpdb->posts . " WHERE post_status = 'publish' AND post_type = 'post' ORDER BY id DESC LIMIT 0,1");
$featured_post = get_blog_post($featured_blogs[$random], $thispost);
$post_author_id = $featured_post['post_author'];
$post_author = $wpdb->get_results("SELECT display_name FROM wp_users WHERE id = $post_author_id");
$permalink = get_blog_permalink($featured_blogs[$random], $thispost);
$blog_url = get_blogaddress_by_id($featured_blogs[$random]);
$blog_table = 'wp_' . $featured_blogs[$random] . '_options';
$blog_name = $wpdb->get_results("SELECT option_value FROM $blog_table WHERE option_name = 'blogname'");
$content = explode(' ',$featured_post['post_content']);
for($i=0; $i<200; $i++){
$summary[$i] = $content[$i];
}
$summary = implode(' ', $summary);
//Lets Output the Post ?>
<div class="entry entry-1">
<div class="entrytitle">
<h1><a href="<?php echo $permalink; ?>" rel="bookmark" title="Link to <?php $featured_post['post_title']; ?>"><?php $featured_post['post_title']; ?></a></h1>
<div class="endate"><?php echo $post_author; ?> on <?php date('F jS, Y', $featured_post['post_date']); ?></div>
</div>
<div class="entrybody">
<?php echo $summary; ?><a href="<?php echo $permalink; ?>" rel="bookmark" title="Link to <?php $featured_post['post_title']; ?>">More...</a>
</div>
<p align=right>
<span class="dotie">
<a href="<?php echo $blog_url; ?>"><?php echo $blog_name . '>>>'; ?></a>
</span>
</p>
<?php
};
?>
A lot of what you are doing isn't very optimal. For instance, to get the first 200 characters of a string, you only need to do:
$summary = substr($content, 0, 200);
If you want the first 200 words (as you have above), you can do it as:
$summary = explode(" ", $content, 200);
$summary = implode(" ", $summary);