I finally managed to get blogger to export all my old posts, and it only took about a minute to do it.
On the template Tab there is a setting to control the BloggerNav bar, and I had this set to use a NavBar. Out of desperation I changed it to NONE (as in no Blogger Navbar), just in case that was having problems writing to a 320k file (which was the size of the file after 160 posts had been placed in it).
All I have to do now is sort out the template.
One of the reasons I switched to MT was because I am going to finally make the site IE/DireFox/Opera friendly. Even the box standard template I am using now has problems on Firefox/Opera (look at the heading bar where the description gets mashed (but not in IE).