As I said. the export-import module was developed under version 0.7.7, however I'll test it with the recently released version 0.7.8 to make sure it works under that new version, too.
As regards your backup(2).sql: It only has one product, whereas your spreadsheet lists 3625 products. I assume you heavily edited your spreadsheet or got your products from elsewhere.
Here are some things you should do in the 'products' worksheet:
product_id: Required for each product!
categories: Specify them by category-ids, not names!
sort_order: Specifies the sort-order of the products within a given category
language_id: 1 (if language is English)
You can download a PDF documentation for the Export/Import module from
http://www.mhccorp.com/shoppingcart.shtml .
Also, I think you can dranatically reduce the number of products by using product options for certain products (such as color, size, grade etc.).
It's all documented in the PDF manual.