Are Premiere Element templates PSD files? Sorry; someone who works with elements may drop by to comment.
I don't know. I've always just used them from within the program, never really took a look at the underlying files.
When you open Encore and look at the library, what do you see?
Out of the box, there were templates. Some look familiar (maybe the same as the Elements ones??). The "General" category has maybe 10 templates?
I didn't know if the download added more templates or not. The "General" version didn't seem to have noticeably more, I really didn't get a chance to look at the rest...