After launching the following window will be displayed.
The default destination to copy template is the location selected in Finder. Therefore you must launch StationeryPalette from sort of launchers e.g. Dock, Services menu and so on. You should not launch StationeryPalette by double clicking in Finder.
To edit contents of template, double click items of template list. No new file will be generated.
The order of templates can be changed by drag & drop. All the operations for managing templates for example renaming and deleting can be done in this window. Also you can select template by typing template's name like Finder's windows.