I had a similar problem in that I could not import. The process would start and eventually hang or time out. This might help. I left all the blogger setting for publishing alone and only changed the template per the instructions.
I then published to blogger. When it completed I viewed the details and copied down the archive names that were buplished. Then I went to view blog and deleted part of the address (I think all after /apl/ ) and inserted one of the archive names I had copied down.
When the page for and archived month came up I viewed the source. I copied it and inserted it in a new php file that I named in accordance with the WP conventions and I save it in the root. The very top line of the file contains some text that needs to be deleted. Deleted all items up to ||wordpress|| (or wordpress entry?? You will know when you see it.
I did this for each month archived and then when I was done I cliked on the button for the last step. All my archives were imported.
Then if you are keeping the blogger account you need to put you original template back in and re-publish.
This takes time but not as much as I wasted waiting for the importer to work.
Hope it helps
BD
