download existing site files – does this mean via export -> download export file?
No, this means all of the WordPress files. Since you’re on localhost, there’s nothing to download, just copy the installation’s files.
move backed up items to new folder. well now they say “backed up” but I presume to mean the download/export files from 1 and 2
Correct, because steps 1 and 2 are just about making a backup, so you you can recover if you make a mistake.
when I log in to the live internet site it is already set to the new urls -> mydomain.com/wordpress so don’t see what needs to be changed. I certainly don’t want the names from the old site put there.
Excellent, they should be whatever you’re moving them to. If they’re already set that way, that’s great.
download “the files” again. umm WHAT files?
See step 1, now you’re actually going to move the files.
export the database again? which one or do they mean the same ones from 1 and 2. well those haven’t changed so why do that?
The same one as step 2, except that was a backup. This time, you’re getting the database after you’ve made the change in step 4.
edit wp-config etc. do they mean the wp-config on the original site?
The file from the ones you collected in step 5.
upload the files – by this I presume they mean the saved items from 1 and 2. or is that from 5 & 6. and upload how thru the import command on the new site?
The files from step 5. Upload them via SFTP, FTP, or a file manage in your hosting provider’s control panel.
import the database – I take that to mean the original saved database from 1
No, step 1 was your backup. You’re uploading the database from step 6.