Login to your admin panel > Manage > Import > and then choose the format your old blog was in (be it Blogger, LiveJournal, etc). This does all work for you.
Ahh, I see you are using the Arthemia theme. That is what mine is and I am having the same problem as well. Like you, I’ve tried numerous variations and placements, but, everytime, no luck. It just seems this plugin and theme does not like one another, yes?
I ask this, does anyone know how to adjust the theme so that it be compatible with the plugin?