I've only upgraded from 7 to 8 yesterday, but so far all my old Songs have updated perfectly. What happens when you try it?
Presumably you can open the old Song, but if not then there's an old trick to make life easier: +"Get Info" (Command-I)+ on one of your Logic 7 Songs in the Finder, & change +"Open with…"+ to Logic (i.e., 8). Then click on the +"Change All…"+ button. Once you've okay-ed that, all your Logic 7 Songs will open in Logic 8 from now on (unless you change it back again, of course).
Anyway, if that's not the problem, then what is going wrong?
If it's to do with hardware setup, then +Applications > Utilities > Audio MIDI Setup+ is the first place to look.