Instead of going through all these hassles, try one thing. In the WP dashboard of your old blog, there is an option Tools->Export. That will export all your posts to an XML file that you can save on your PC. Next, install WP on your new blog like you normally would. Now login to the dashboard of your new blog and select Tools->Import. Import the XML file that you saved earlier. It will also download all your images from the old blog to your new one.
I tried it when I moved from Wordpress.com to a separate host.