If you're moving into a hosted solution, I would think the support team for whoever is hosting would be able to provide guidance as to the best way to get your old Confluence data into their hosted solution.
If the hosting provider can't help you, and you don't want to upgrade the existing confluence, I would recommend doing something along the lines of:
create a staging server seperate from your production server, using confluence 3.2.1, move your data to staging, upgrade staging to 4, move your data to production 4
Migrating data is always a chore, no matter what your start and end points. Good luck!
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