To import the demo.xml please follow this steps:

• Log into your site as an administrator.
• Make sure you activated your new theme before proceeding.
• Go to Tools → Import
• Choose “WordPress” from the list.
• Upload the demo content .xml using the form provided on that page.
• You will be asked to map the authors in this export file to users on the blog. For each author, you may choose to map to an existing user on the blog or to create a new user.
• You will then have the choice to import attachments, so click on the “Download and import file attachments” box.
• Please be patient while WordPress imports all the content. Posts, Pages, Projects, and Menus are imported.

Note: You will still need assign the menu a theme location & you’ll need to configure widgets. This is a limitation of WordPress’ import system.