Hi Guys –
When you make these templates, apart from the 5 lines starting at the top
<?php
/*
Template Name: My Template name
*/
?>
also make sure you are saving the template file with the correct line endings. I made this mistake in TextMate on OS X – my preferences were set to save as ‘CR (Max OS Classic)’ – when in fact it should have been ‘LF’ which is more universal.
once i opened all my templates and re-saved them, everything reverted back to ok.
Note – you may need to swap theme to default and then back again just to reset things.
Hope this helps.