I don't know what I was thinking this morning when I answered the question originally

The code for Userform1 should be
Code:
Option Explicit
Private Sub CommandButton1_Click()
Hide
Tag = 1
End Sub
Private Sub CommandButton2_Click()
Hide
Tag = 0
End Sub
i.e. Tag = 0 is the response from the Cancel button and not '2' as I posted. Apart from that it works as described when I substitute my test template path for yours (and this error shouldn't have caused the process to crash, but would have completed the process whichever button you clicked.)
The buttons on the Userform only work as intended if you run the main macro and not the userform code.