In an effort to create new templates, I was successful with creating the regions, however, I am unable to add widgets. I believe that I will need a screen share call to resolve. Chris Wright is intimately familiar with our setup/past issues.
I am going to create a support ticket from this request. We will post resolution here when done.
The cause of the problem in this case was a version of jQuery UI being referenced by the template (the CMS user interface also uses jQuery and there was likely a conflict between the two versions).
Hope this helps!