Ok,got it to work all fine.
After the importer finished its work, I created a duplicate package of the entire wp and db using Duplicator plugin for backup.
I proceeded to upgrade wp manually to 3.6.1 just to be safe, and it worked like a charm.
Don’t think this is a resolved case as far the Importer is concerned, but am happy to set this post as resolved if you want me to.
Also, I noticed on previous attempts a small problem with the Importer duplicating posts when I rerun it.
I run an image importer tool such as Cache Image plugin to retrieve images from the blogger site and rewrite post links to point to local images.
If I run importer again, it does not recognise the updated posts (with local images) and re-imports these posts. Maybe something you might want to look into.
All the best, and thank you for import plugin, even with its faults, it still allowed me to move to wp which is so much more flexible than blogger.