Totally lost!! What theme directory?

Guys,
I've given up on garland for the time being since I must be doing something wrong.
I've searched all forums but no solution of any kind.
First off:
I must be missing something since michelle keeps talking about an included template.php for garland in the module (or any other for that matter) but I assure you it does not exist (I've again downloaded today including the latest dec 29th revision).
I see no template.php. Might there be other stuff missing?

This is what I found online for template.php:

<?php
// $Id: template.php,v 1.4.2.1 2007/04/18 03:38:59 drumm Exp $

/**
* Sets the body-tag class attribute.
*
* Adds 'sidebar-left', 'sidebar-right' or 'sidebars' classes as needed.
*/
function phptemplate_body_class($sidebar_left, $sidebar_right) {
if ($sidebar_left != '' && $sidebar_right != '') {
$class = 'sidebars';
}
else {
if ($sidebar_left != '') {
$class = 'sidebar-left';
}
if ($sidebar_right != '') {
$class = 'sidebar-right';
}
}

if (isset($class)) {
print ' class="'. $class .'"';
}
}

/**
* Return a themed breadcrumb trail.
*
* @param $breadcrumb
* An array containing the breadcrumb links.
* @return a string containing the breadcrumb output.
*/
function phptemplate_breadcrumb($breadcrumb) {
if (!empty($breadcrumb)) {
return '

';
}
}

/**
* Allow themable wrapping of all comments.
*/
function phptemplate_comment_wrapper($content, $type = null) {
static $node_type;
if (isset($type)) $node_type = $type;

if (!$content || $node_type == 'forum') {
return '

';
}
else {
return '

';
}
}

/**
* Override or insert PHPTemplate variables into the templates.
*/
function _phptemplate_variables($hook, $vars) {
if (module_exists('advanced_forum')) {
$vars = advanced_forum_addvars($hook, $vars);
}
if ($hook == 'page') {

if ($secondary = menu_secondary_local_tasks()) {
$output = '';
$output .= "

\n". $secondary ."

\n"; $vars['tabs2'] = $output;
}

// Hook into color.module
if (module_exists('color')) {
_color_page_alter($vars);
}
return $vars;
}
return $vars;
}
/**return array();* <<<--- I commented. Is this not supposed to be here???/

/**
* Returns the rendered local tasks. The default implementation renders
* them as tabs.
*
* @ingroup themeable
*/
function phptemplate_menu_local_tasks() {
$output = '';

if ($primary = menu_primary_local_tasks()) {
$output .= "

\n". $primary ."

\n";
}

return $output;
}

Some of us really need more specific instructions. Should return array(); in the above be removed completely??
Is this even correct?
Where can I see someones garland template.php?

README.txt
It may seem obvious to those more experienced but the Readme.txt is not clear on where advforum goes:
2) Copy the advforum directory to your theme directory. If you use more than one theme with forums, copy it to each.
Question: My theme root directory, my garland theme directory?, the directory of each of my themes? WHICH ONE??
I saw a post that said to put in the theme root directory but thats even more confusing since then what is the point of putting advforum in "copy it to each"?

MY STORY:
Anyway, have decided to try sky for the time being as I hear it should work out the box after i've setup as in the readme.
The forum now looks different so I must have done something right.
Thing is, I CANNOT POST IN THE FORUM.
Well, actually I can go through the actions of posting:

http://www.mheshimiwa.com/forum
user: guest
pass: guest

The form claims to have the post created, I can even see the post but when I head back into the forum I created it in, it has vanished.
Whats interesting is that it does not vanish completely but rather moves itself depending on publishing options to either front page or somewhere but not into the forum.

Help me please.