I got the “malformed” message too, then switched to blogspot and it was finally fixed (after a few straight days of brow-furrowing). I got this message after it all went through:
“Congratulations!
Now that you have imported your Blogger blog into WordPress, what are you going to do? Here are some suggestions:
* That was hard work! Take a break.”
Ha ha! That’s funny except IT ACTUALLY WAS HARD WORK