Well that was odd. I closed SDDM and re-opened and still erroring off. Had to do some work in another design so I closed the testing design and got a bunch of errors in the log relating to starting with "2014-02-10 09:48:27,228 [Thread-60] ERROR DesignLevelSettings - Unable to Save Design Level Settings: " I opened my other design, made a couple of changes, saved it and closed SDDM again. No additional errors in the log. Now Import works fine.
Any idea what is going on?