Did you read the instructions before you downloaded the template? From
Template Download Help at office.microsoft.com:/templates:

"To download the template, follow these instructions:

   1. Click the Download Now button below.
      The template downloads as a compressed file called a cabinet
(.CAB) file.
   2. In the File Download dialog box, click Save.
   3. Select the folder where you want to save the compressed file, and
then click Save.
   4. Open the folder where you saved the compressed file, and then
double-click the file.
   5. Use one of the following methods to extract the template from the
compressed file:
          * If the file opens in WinZip® or another decompression
program, use the program to extract the template from the compressed
file. After extracting the file, you can double-click the template to
open it in the program it was designed for.
          * If the compressed file opens in a regular window,
double-click the template file, select the folder where you want to save
the template, and then click Extract. The template extracts to the
location you chose and the dialog box closes. The window for the
compressed version of the template will still be open. Close it. Now
locate the folder that you saved the uncompressed template to, and then
double-click the template to open it."

If you did not follow these instructions and/or still cannot extract the
template,

- Find the downloaded template using Windows Explorer
- What is the file extension of the downloaded template? Is it .mdz or
something else?
- What directory did you save the template to?

LeAnne

You generally don't open templates directly. Select File->New and then
select New From Template and select the template.