This plugin lets you define content templates to quickly and easily create new posts or pages.
In your WordPress admin, usually under the Comments section, there will be a Templates section (much like Posts and Pages). Hover over it and click Add New.
In your write screen look to the upper right and there's a box there. Select a template from the drop-down and click "Load Template".
First you need to define your templates, go to the Templates section of your WordPress admin and create your templates there.
Sure you can! ;) Templates are actually Custom Post Types so you can make a lot of templates.
If you define a template and check that box, it means that you are allowing users to use your template. That is, they will be able to create posts or pages using that template. This does not mean that they will see your template in the administration area or they will be able to edit it.