My thoughts below, based on my understanding and processes, but anyone can feel free to correct anything misstated.

So it seems I need a vanilla install of the same version of Drupal. Then copy all the /sites/all directories& files across to my machine.

Right, as long as you aren't mucking with anything in core, are using the same versions of core on your old and new site, and are using the standard Drupal folder structure for modules, themes and files, then you should be able to just copy the sites directory, including both sites/all and sites/default. The exception to this is the file sites/default/settings.php. You won't want to overwrite that in your new installation.

Install backup_migrate module on my new installation. Point backup_migrate to the .sql backup I downloaded from the server and things [should] work.

Moses mentioned doing a backup of the whole www directory, this is impractical for me for 2 reasons.

1. it's huge and has thousands of files that are of no interest to my

Drupal work 2. it would tend to overwrite the /var/www files and system I use on my machine. Instead I did a backup_migrate of the drupal directory

For a fresh install I need a database of the same name and password. I don't know the database password.

The database doesn't need to be of the same name and password. Backup-Migrate will just move the data to the database that you have set up for this fresh install, whatever it's name is. This is defined in settings.php, which is why you don't want to overwrite that file.

Will using backup_migrate simply write to or recreate that new database or will it overwrite all the files that the drupal fresh install created? I suspect it will overwrite and this is where there could be a conflict between a fresh install and the server copy files.

It will drop and recreate all tables, at least those tables that you are including in the backup you create. I just always use the default tables that Backup-Migrate has selected, and it works for me.

Thanks Roger

Michelle