So I've created two videos - one for Elements, and one for Photoshop. I hope they help clarify things.
These videos specifically discuss the resizing step of the template workflow. They don't explain setting up the clipping masks, or placing the images, or anything like that. If you need assistance with those broader issues, I've written tutorials here and here (plus some more here, here and here).
Here's the Elements video:
Here's the Photoshop video: