If you encounter with this kind of issue, dont worry. The fix is really simple. Please just contact your hosting company to enable zlib compression. Thats it 😉 Also please bear in mind that this is not theme related issue 😉 Thank you.
File demo-image01.jpg wasn’t uploaded Means that you have probably set 755 permissions on your server. Please simply set 777 recursively to your theme folder (../themes/gdaynews/) Importing takes long time (couple of minutes) and ends with an error This is a problem with slower servers. In the most cases, there is a problem with resizing images.
Have you imported demo content and your images have bad proportion, like here: Your server probably don’t have installed imagemagic extension. Please contact your hosting service to solve this issue. After that please re-install WP (clear database), and import DEMO again. With imagemagic extension should your images looks OK.