Everything looks fine, but go to Settings/Privacy in the admin panel and make sure that "I would like my blog to be visible to everyone, including search engines (like Google, Bing, Technorati) and archivers" is selected.
Since both your robots.txt file and robots meta tags are allow complete unrestricted access, I recommend removing them. Basically, if you're going to leave the door open, a sign that says "Open" may just confuse people. So, delete the robots.txt file, then go to Appearance/Editor in your admin panel and open the Header template. Find and remove the following line:
<meta name="robots" content="follow, all" />
Unfortunately, most search engines cache robots exclusion rules for a while, so if the original owner had used robots exclusion rules to block the site from search engines before you go it, you might be waiting around for a while before the search engines realize that anything has changed.