OS XP Pro

Not really a new user but transitioning from 2000 to 2003. 2003 Help says
that if you put a template in the Templates folder, it will be an item in
the General tab, and that if you create a daughter folder in Templates a
separate tab will be created. Doesn't work as far as I can see, so I must
be doing something wrong. I only have on Templates folder (C:\Program
Files\Microsoft Office) on the computer (well, Acrobat has one but . . .)

I tried putting templates in the 1033 folder because I thought I remembered
something about that, but no go.

What's the trick?