I noticed the preview was shadowed. When people using PS save templates with shadows attached to each layer, it normally screws it all up in PSP. I suspect this may be the problem here, too.
I dont think I have that template Mari so I couldnt check it in my PSP but I know Ive had that same issue with some templates Ive bought in the past from other designers.
sorry... i am just seeing this. i fixed the file so the shadows are on their own layer, i thought. send me your email so i can send you a file. thanks!