In this tutorial we will be manually installing a template via the Joomla 1.0 template installer. This is useful if your does not support gunzip.
- Right-click on your template zip file and select Extract Here.
- Right-click on your newly extracted folder and click Copy. If you are uploading to a remost server this would be when you would connect to FTP.
- Once you are connected to the folder you can either upload (FTP) or paste the folder (localhost).
- We now have the folder setup. Let's go back to Joomla.
- To begin navigate to Installers > Templates - Site.
- Type the path to the folder you just uploaded/copied in the Install directory field then click Install.
- This screen will show you any information about the template you just installed.
- When you are ready click Continue...
- You can now see the template has been installed.
Why wait? 
