I used this same method a few years ago to very good success.
Just make sure to follow each of the steps to the letter,
especially the requirement to name all your accounts in Moneydance
with the same exact spelling for the accounts in MS Money. You can
change the name later if you like.
Jim is correct that you can find detailed instructions on
transferring your data in the Moneydance user guide here. I encourage you
to download our free trial version and experiment with the program
before you decide if you would like to purchase it. The demo
version is fully functional and allows you to manually enter 100
transactions. Imported transactions are not limited, so you'll be
able to fully test connections with your bank and import data from
another program. If you decide to purchase the program at a
later date you can keep all your data, the license key simply
unlocks the ability to manually enter more transactions.
For more information on how to get the most out of your trial
period, check out our blog post on the
Please let me know if I can be of further assistance, and thank you
for your interest in Moneydance!