Can you please try clearing the Contribute preferences once?
Refer the blog post http://blogs.adobe.com/contribute/2011/11/launch-contribute-freshly-by-deleting-preference s.html for clearing the preferences.
Clearing the preferences has been tried on a couple of computers and it doesn't change this problem. This is happening on all of the computers that were upgraded to CS5, not just one.
If I change the role settings to allow users to "create a blank page", then they can "publish as new page". However, we want to restrict users to our templates so this is not an option that will work for us.
One way that we instruct our users to create a new page is by navigating to the page, (do not choose edit page, just navigate to the page) go to file>new...> and then choose Copy of Current Page.