I'm going insane with templates

I use Paint Shop Pro 8. Ok, I've been at this since yesterday and I'm going completley crazy. I've checked the memories and tried the complete tutorial for templates and and read and read but I STILL can't get templates to work. After I paste my template over the image all I get is it green. I use the magic wand and it doesn't work, I increased the color depth to it's highest. Still all I come up with is a green template. One time the wand did a bit of transparencie but the image that was under the template dissapeared. I'm litearly sitting infront of the computer pulling my hair. I follwed the tutorial you have under templates in the memories step by step but nope, it doesn't work. Any help?