Transitioning to double entry

[Wes Gray]

A year ago I exported my Quicken data and imported into Gnucash, but
I didn't quite "get" double-entry, so I just created 5 or so accounts
plus a Misc account and made every transaction to or from Misc.  Now,
with some experience under my belt, I would like to transition to
using double entry correctly.  So I ran the new file druid and created
a nice account tree, then hacked that into my current file, then moved
my current accounts into where they belonged in the tree.  Now I am
confused as to how to best proceed.  I can think of a few options:

1. Do nothing to the old transactions.  The problem with this approach
is that then I will still have this big Misc account, and it will throw
off all future reports (if I understand things correctly).

2. Go through all my old reconciled transactions and change the to/from
account from Misc to a valid account.  Problem is, the data is several
years old and for many of them it is hard to tell what the transactions
were.  I could fix up the obvious ones and label the unknown ones as
Misc Expenses, but then that big Misc Expense account has a similar problem
as option #1 above.

3. Start over from scratch, without my old data.  I would miss my old data,
but I could keep it around for reference.

I am leaning toward option #3, but maybe I am missing something.  How would
this best be handled?

Thanks,

-Wes