I’ve found that the plugin Cache Images works very well for this. You can scan your entire site and bring over all the images so they’re local:
http://wordpress.org/extend/plugins/cache-images/
You may want to install Smush.it before you bring over your images if you want to reduce their file size at the same time you make the transfer.
http://wordpress.org/extend/plugins/wp-smushit/
I’m not sure what you mean by “images still link to Typepad” though. If you mean the images themselves are hyperlinked to point at posts hosted on Typepad, you’ll need to do a database search/replace to fix that. This is a really good tool for that: http://interconnectit.com/124/search-and-replace-for-wordpress-databases/
Hope this helps, good luck!