Just did it again and it does seem to stick. I have tried this so many times, I now have the template folder as a desktop shortcut.

One thing that is annoying is that when I go to save, it doesn't go back into the same folder but tosses it off into the Documents library and I have to go rename the original, chase the new version and put it back in the templates folder. )-: It is possible that this may have been part of the problem in earlier attempts but I am sure I did all this back then..

For now, it seems to be sticking.
Optimistically, it might work this time...