[jen@jendelythart.com]

This section allows you to edit the templates from which you store is built. As the templates engine is very flexible and extremely configurable, you may change the look and feel of your store so that it will fit any design layout.

Ok. Turns out the files "cannot be modified". Teh webmaster tool clicking on the image came up with:
skin/vivid_dreams_violet/images/vivid_dreams

File: /vivid_dreams_violet/images/vivid_dreams/head-bg-flc.gif

Warning: This file cannot be modified.

So does that mean teh templates are NOT customisable? or I need to know how to make them unlocked?
Which I asked initially, but that was not addressed, so i assumed it was not the issue.
I'm working hard to see how to unlock them.
Any help appreciated.