The steps that you have done should work fine. You should also change the portalalias table to reflect the name of the localhost site name also
The following steps should be enough to move your application locally from a host:
1) copy all of your application files and folders from the host to a local directory, for example to c:\backupsites\ws\30apr06
2) Create an IIS entry for a new web application and point it to your directory created in step 1 - for example, localhost\ws30apr06
3) ensure the appropriate ASPNET application has security rights to the directory created in 1
4) backup your production database and restore it locally
5) Create a local user to access the local database
6) Change the web.config file to point to the new local database
7) Change the portalalias table entry in your local db for your main site to localhost\ws30apr06
8) call up the site created in step 2 localhost\ws30apr06 in a browser and cross your fingers