A plugin that copies blogger hosted images to your local server and updates the links within the posts.
I was a little leary with trying this plugin out because of the warnings. So I created a test site first and used it and had no problems so then I backed up the real site I was working on and successfully imported the images. Wala!
Could it be improved? Maybe a message on installing the plugin that tells the new user that the usable settings appear under tools
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