The template is in a folder called templates and the name is template, so here's some of the code:
<!-- InstanceBegin template="/Templates/Template.dwt" codeOutsideHTMLIsLocked="false" -->
<head> etc etc
It says /templates/template.dwt so it should be correct right?
Just a hunch: Did you check to see if capitalization of file and folder names still matches? /templates ist not the same as /Templates. Same with the filename.
What exactly do you mean by "the template was still connected to the template on your computer"?