I would _love_ to know how this works. The documentation is crap (but the deficiencies in the documentation is a topic unto itself). I have seen other threads where people have it working, and apparently didn't have any problems in doing so, but I can't make it work to save my life.
I have tried setting the SharePoint site (in the Object Browser) to point to:
1) A site
2) A site collection
3) The server's root site.
None of these options allow me to select a template (either standard or custom). I can click on the elipses, which would be useful if I could actually navigate to the template gallery, but I can't. I can click Browse, but I always get the same error when I click "OK" (the error indicates that the site that does exist can't be found -- wonderful...). Everything else is straight-forward, but without the template I can't do anything. If anybody knows what magic is missing from the equation, please share.