For people looking for a quick hack, the following patch did the trick for me. I am not a WP hacker, so just replaced the wp function with the php builtin.
Index: wp-filer/link-import.php
===================================================================
--- wp-filer/link-import.php (revision 303)
+++ wp-filer/link-import.php (revision 304)
@@ -97,7 +97,11 @@
}
if (isset($opml_url) && $opml_url != '') {
- $opml = wp_remote_fopen($opml_url);
+ if (substr($opml_url,0,4) == 'http') {
+ $opml = wp_remote_fopen($opml_url);
+ } else {
+ $opml = file_get_contents ($opml_url);
+ }
include_once('link-parse-opml.php');
$link_count = count($names);