Learning to use templates is a digi-scrapping MUST. It's a big time-saver, and if you know how to use templates, you also have a good start on knowing how to use layers, another Photoshop must. :) Chelle also has lots more tutorials on her YouTube channel.
I thought I'd share this here because it's one of the things people ask me about a lot. You can also download the template she uses for demonstrating her template. The link to the free template is in the "About" the video section on the YouTube video page: Digital Scrapbook Tutorial - How to use a Template in PSE