Hi slowhost, your not with 1 and 1 by any chance are you? I had a similar problem and was unable to solve it. I eventually contacted 1 and 1 for help and got none. They simply told me that there was nothing they could do.
I have changed hosting companies and the templates work fine now.

hi yeah i`m with 1 and 1 and they told me theres nothing they can do, thing is i only joined up about a month or two ago so dont know if i can cancel my hosting and go somewhere else or if i`ll just have to carry on with them... what did you do? cheers

I just bit the bullet and went elsewhere. I was going to just let the account expire but I have phoned them today to downgrade to a domain only account. I think you might be entitled to some money back. I'm not sure yet if I will because the account was due to run out at the end of next month anyway.