Gave WP it’s own directory, but having problems with Pages

I recently installed a WP blog and put it in it’s own directly. I followed the instructions on the WP site to copy the index page and .htaccess to the web root index and everything worked great. That was until I tried to add a Page using a custom “About Us” template. The page shows up, but it doesn’t use the template I select. It always uses the blog index page. Even for a 404 page, just shows the index page.

Do all the page templates I create have to be in the main root or can they stay in the template folder? Do they need any code that goes in the index page to let WP about the new directory.

I have the same setup on a another domain with WP in the root directory and it’s working fine, so I know it was to to do with the custom directory.

Take a look
http://www.daveditges.com

About us (uses wrong template)
http://www.daveditges.com/about-me/

404 example (this page doesn’t really exist)
http://www.daveditges.com/nothing

Here’s a working version of the site not set up as with WP in it’s own directory.
http://www.fixtheweb.com

I would appreciate the help. I’m not a programmer.

Thanks,