Download then unzip the template file.
NEXT:
1. Upload the image(s) to your image hosting account (Flickr, fotopic.net. Or photobucket.com - recommended).
2. Open the template text file (.txt) in Notepad, UltraEdit, or another text editor.
3. Looking through the text file, replace: http://your_image_url_here/ --> with your own image URL (see no. 1)
4. Login to blogger.com.
5. Select change setting - Template - Edit Current.
6. Delete all of code in the box, replace with all of code from the template file.
7. Click 'Preview' to make sure the layout.
8. If everything looks okay, click 'Save Templates Changes'.
9. Don't forget to click 'Republish' after saving the template.
To see the changes, refresh your browser (press F5 or Ctrl-F5)
NOTE:
You're free to add your own accesories to the template code. Example:
<!--Begin Shoutbox-->
You can put your shoutbox code HERE, in this line!
<!-- End Shoutbox -->