Thanks Charles. I have made the folder change as you suggest. Now, when I try to save a template, the Microsoft folder appears at the top of the folder list in the Windows Explorer box that pops up. Below it is the all important 'Templates' folder. Clicking on this gets my templates saved in My Templates.

I also copied and pasted the template from My Documents into Templates - and it now, thankfully, appears in My Templates as I originally wanted.

Thanks again for helping me solve this. Really appreciated.