When you log in, you should have an option in your Dashboard to download your archives. then in your Dashboard go to Tools at the left and then choose 'import' and you should be able to import the xml file you received. That should give you your posts :)

new Xanga is on a Wordpress based site. So Xanga is now essentially wordpress, except that all your readers and those you follow will all be with you. So you are still a part of the community. General wordpress.com doesnt really allow for the same sort of 'close community' feel, but of course if you are unable to post your blog here because of the yearly fee, then it is a good option.

Were you a free or paid premium member of Xanga, or did you contribute a donation? If so, your blog should of moved over. If it has not, unfortunately, you'll have to sort this out with Xanga. However, if you are a free member of Xanga, unfortunately, you cannot blog on Xanga anymore, unless you pay a subscription fee. https://xanga.crowdhoster.com/relaunch-xanga
If you wish to pay for a subscription, your account will be upgraded so that you can upload your archive back on Xanga once more.

You do not need to pay a fee to obtain your archive, as it should be located in your dashboard (navigate there by clicking your name in the top right). Your archive should be available no matter what type of account you had, for free.

That being said, if you do not wish to remain on Xanga, there are a variety of other bloghost providers, that offer service for free. You will need to download your archive, and then you are free to choose to go wherever you want. The easiest of these, would be Wordpress.com since your archive is already in the proper format. You'll want to extract your files out of the ZIP folder, and this will give you XML files of your blog. If you set up a new blog on Wordpress.com -- simply follow the import instructions for each XML file: http://en.support.wordpress.com/import/ Make sure to select Wordpress as your import option. Other bloghosts may have their own unique importing methods, and may require conversion tools or other steps to move.

To further clarify, Wordpress.com is not the same as Xanga. Xanga is merely using Wordpress type software and structure, but they are not the same company.