Ok, I see what the situation is.

If you look at the code in template.html, you will see that the includes are php statements.

It is assumed that the site for which you would use these templates has php available.

You have just looked at the template.html file directly with IE and of course the php code that pulls in the other files hasn't been executed.

You need to have either a local php installation, for example WAMP, or a test area on a live server that you can use.