I beg pardon up front in case this is too simplistic, but I'm not sure which area troubles you.
1. Unzip the archive and upload the resulting Blocks folder to your sites' assets/templates folder.
2. Log in to your site's Manager, go to Resources, Manage Resources. Select the Templates tab, and Create new. Give the template a name (such as Blocks) and a brief description (two-column blocky template). Open the file Blocks.templates.html (from your local copy of the Blocks folder) in a text editor. Copy/paste the entire contents of that file into the textarea of the new template form. Save.
3. Go to the Template Variables tab and create a new TV. Fill out the form like this:
Variable Name: blocksTopLeft
Caption: Blocks TopLeft
Description: content for top left block of Blocks template
Input type: Textarea
Input Option Values: (leave blank)
Default Value: (what you want to show in this block, I used <h2>[(site_name)]</h2>
<h3>[*pagetitle*]</h3>)
At the bottom in the section Template Access, check the box for the template you just created.
Now create the other Template Variables in the same way, naming them as specified in the INSTALL.TXT file.
Be sure to check the box in Template Access for your new template each time!
Another issue, make sure you copy/paste the image tags exactly for the blocksGallery TV. If there are any spaces or carriage returns between the tags, it will break the layout.
4. Now go to the Chunks tab and create a new chunk, name it Footer, and put what you want to be at the foot of each page.
Now go to Administration, System configuration and set the default template to be your new template. Or, you can set the template of individual pages to be your new template.
When you edit each page, under the Document content editor part you will find a textarea for each of the TVs you created. You can edit the content for each page here. If you don't see them, make sure that you named them the same as what is used in the tags in the template (like [*blocksTopLeft*]) and that you have checked the box for the template in the Template Access section of the TV.
