Not to worry – I’ve since figured it out on my own.
For others who may be having a similar issue, make sure you’re not over your disk space quota with your host – that was what the issue was.
Thanks for the reply Michael…I had a little issue with the installation of WordPress 2.3 which was causing the headaches I was having with theme/plugin installation.
I’m not sure how it ended up there but there was an extra wordpress folder in my server directory that shouldn’t have been there. Removing the folder and reinstalling WordPress gave me full functionality but still didn’t solve the import problem.
My new site is now up and running and I’m loving WordPress now 😀