Peg,
When doing what you mentioned i did the following steps...
Start Bitcoin Armory offline
Import or Restore Wallet option
Single-Sheet backup option
Version 1.35c (2lines) option
Restore wallet option
Then
Wallet properties
Export watching-only data option
Export watching-only wallet file option??
Save
Restart Bitcoin Online
Wallet properties option
Delete/remove wallet
Then
Import or restore wallet option
Import digital backup or watching-only wallet option??
Continue
**I still do not see balance, I rescanned balance as well. Bitcoin armory shows 494686 Blocks