To upload .dwt template your username has to end with /dw. So its be something like "email@example.com/dw". Go to Site Settings >FTP settings in DW and check the username format.
My username already ends in /dw so that shouldn't be the problem.
I too have found that you cannot create a template in DW and then upload it to BC easily, as you are experiencing, you need to create a blank template in BC first, download it to DW, work on it and re-upload.
Somehow the templates folder in the BC site is not available to add files to in DW as easily as the stylesheets folder. So I download the templates folder from BC in DW.
To create a template for a web site I do the following in
1. In BC back end go to the templates area, and create a blank template.
2. Set up the site in DW, and then download the template folder from BC. You will then have the blank tempate you created in BC on your hard drive and can work on it and re-upload to BC. BC will then see it as a template file and it will be available to apply to pages. Notice that it is a .html file
3. Start a blank template file in DW, and copy the code. The blank BC template you downloaded won't have any of the code you need like the HTML declaration at the top in <head> etc.
4. Copy the tag_pagecontent tag from the BC template you downloaded, and put it into Notepad. (BC won't recognise your file as a template if it does not have this tag)
5. Copy all the code from the blank DW template you just created, and paste it into the code view of your BC template. Save the file, remembering to save as .html like it was in BC.
6. Put the tag_pagecontent tag from Notepad into the part of the template where you want your page content to be. This area is what you can see when editing web pages in BC.
5. Go on creating your template in DW, linking it to the website stylesheet you create. Make sure the site stylesheet is in a folder called Stylesheets.
6. Upload the Stylesheets folder and Templates folder to BC when you are ready.
Hope this makes sense and is helpful!
Thanks. I actually just checked and my template appears in the folder now on BC. It just took a while to show up. If I have any more problems, I will try your method. I guess that's a glitch they need to fix. Thanks for your help!