Are you on a Windows or Mac machine?
On a Mac, the files should go into MAC HD/LIBRARY/APPLICATION SUPPORT/ADOBE/PREMIERE ELEMENTS/11.0/ONLINE/DVD TEMPLATES/ALL_LANG/[Category].
On a PC, the files should go into C:/PROGRAM DATA/ADOBE/PREMIERE ELEMENTS/11.0/ONLINE/DVD TEMPLATES/ALL_LANG/[Category].
AN IMPORTANT NOTE: Make sure that any templates you save to this ONLINE/DVD TEMPLATES area on either a Mac or a PC include, in the folder, a file called DOWNLOADED.TXT. If your template does not, copy it from the folder of another template that you have downloaded! If this file is not in the folder, the program will try to download another file over it and will erase your new template.
thank you! the downloaded.txt file was the missing piece!!!!
That's a little secret from my book.