Can you show a screenshot (or list) your Templates settings? In the first “Template folder location”, it has to be correctly typed, so it is best to let the auto-completion finish typing it. For example, don’t put a / at the beginning of the path.
Does your template have a unique name? Maybe it can’t find it.
Is there any fancy syntax in your template? Have you tested with some basic text just to make sure it isn’t a syntax error?
If you open up the developer console, do you spot any errors?