Here is the complete tutorial on how to install blogger templates downloaded from this site..

1.First download the template and unzip the file using winrar or winzip. After extracting the file you will see a folder named Images(incase if you lost) and an xml file.

2.Now, sign in to Blogger dashboard and click on the layout.



3.Here is the important step, after uploading any new Blogger template, all of the previous widgets like your google adsense ads,text,profile,poll,etc etc will be lost.
So, to avoid this to happen, in this step click on 'edit' on all the widgets and copy the codes into notepad,etc.



4.Next, click on the 'Edit html' tab



5.You'll see an option to download the current template, so do it!



6.Just below that,there's an option of uploading new template.So, use the Browse button and upload the downloaded xml file(which we discussed in step 1).



7.Now, a message appear saying that your widgets are about to be deleted.Click on the Confirm & Save (no problem doing this because we already copied the widget codes in Step 3).



Now you successfully installed the template :)
Click on the 'Page elements' page now and add the codes that you copied in step3 using the 'Add a Page Element' option.