When DIFS installs you will see some examples installed in the examples directory.
The example most closely related to what you are doing is the “Job Descriptions” example.
This example should work so look for differences between the spreadsheet and xml and what yours contains.
I have noticed the following for starters;
You have <DestinationItemType>Item</DestinationItemType> which is correct; this tells difs to import just an item, no file.
But you seem to be missing;
ContentType is the important setting; the others will be ignored since you are importing items not files.
Also I noticed in your post that the excel contains;
LastName Company BusinessPhone EmailAddress ContentType ImportKey ImportStatus Exception
Lastname1 Company1 123456 #9;Item 1 Import" rel="nofollow"> [email removed] Item 1 Import
Lastname2 Company2 123457 #9;Item 2 Import" rel="nofollow"> [email removed] Item 2 Import
I am unsure if this is just a cut and paste problem but this infers that the email address and content type are the wrong way around in the source.
The best advice I can give it to start with the example “Job Description”, just change the list it is pointing to and may the import mappings so that it just sets title. This should work; then just adjust it to
set your columns.