I am a new user of CQ5.4. I have created new template as per http://dev.day.com/docs/en/cq/5-4/howto/website.html. However, I am not able to create page using this template as this template is not availale in New Page screen.
Check the allowedPaths (or something like it) property in your template. To keep it simple you can set it to something like /content(/.*)?. This will mean that the template will be available everywhere under /content.
Normally for MSM you prefer to have it under a specific site so something like /content/mysite(/.*)?.