Really noob question about templates

[Jimfiz]

I've been reading through some of the hacks on these forums and a lot of them require that you "Create a new template"...

My question is How do you create a new template?

I know its a really simple question im a bit confused

Is it something i create within the cmps admincp or do i use a program like dreamweaver then upload it to my server?

Also everytime i try to upload a module i get an error message saying "not a valid module file" does anybody know why this happens?

thanks

[mholtum]

admincp / Styles / select add new template from the drop down