Step 8. Zero ballance in your Blockchain wallet means that you not did step 8 or that there are no coins corresponding to this private key. Zero balance in your paper wallet address means that you/somebody already send this coins. You can check all transaction history here:
https://blockchain.info/, just enter your address and click on "Search" button.
You are absolutely right. I committed a bonehead error and was trying to Import a Private Key from which I had already moved all my coins. They are actually under another Private Key. I followed the steps with that one and it worked like a charm, so thanks a lot.
Now I'm on the fence about selling though! I'm a bitcoin true believer (not a speculator), but I could really use the cash for a business venture I'm involved in. I'll have it back and then some in one year or so, at which point I will most certainly by back in to bitcoin. My one concern is that the price of one btc might go through the roof during this time for some reason e.g. US economic collapse, so I'd sell relatively cheap coins but have to buy back into very expensive coins. Quite the quandary