Images are not showing after moving WordPress installation from server to localhost?

The tip in Part 2 at the site you link that reads

Unzip the database you’ve downloaded and open it with text editor
(Notepad++ or Dreamweaver) and use “Find and Replace” option to change
http://olddomain.com” with “http://newdomain.com” and then import it
with phpmyadmin.

is absolutely wrong. Running a find/replace on a database dump with a text editor will break serialized data at least. And at most, it may may break character encodings if the text editor is not Unicode aware. Either might be your problem.

Use http://interconnectit.com/products/search-and-replace-for-wordpress-databases/ to correctly deserialize/reserialize data during a find/replace by running the script on the server. Read the docs for it. I’ve used it many times.

The other thing that may be going on is that your database encoding on your localhost may be different than the live server. Check both wp-config.php files for the setting define( 'DB_CHARSET', 'utf8' ); that should be the same.

See http://codex.wordpress.org/Editing_wp-config.php#Database_character_set

Edit: The docs above say:

There usually should be no reason to change the default value of
DB_COLLATE. Leaving the value blank (null) will insure the collation
is automatically assigned by MySQL when the database tables are
created.