As Roach said its not a compatiblity issue. I've used that template to make sevreal skins (Using PSP8). You just need to lower or turn off some "Texture" Layers.
The method I used is turning off anything that is a texture or weathering layer. then go back and play with the opacity of that layer to get everything right.....jester does a good job of labeling but somethings are over looked.
I hope it helps