import posts not working

Hi!
I’ve set up a new WordPress account for a friend.
I’ve purchased the domain name and installed WP and everything seems to be working OK.
When I attempt to import her old blog into the new one though, it’s not working.
I followed the instructions carefully, exported the old one and imported the xml file with the uploader. I noticed that the media and the categories are imported, but no sight of the articles ..
When I went into the ftp to check what the problem is I noticed that the xml file has been transformed with the ext .xml.txt …
Is that normal? Is that why it’s not working? What can I do to make this work?

Thanks!!!
Pam