I've done this successfully before so it's particularly frustrating this time...
I'm following these instructions:
A friend of mine is helping me to create a custom theme so perhaps theres a small piece of coding missing? Its the only thing I can think of.
When we create the new php file the Page Template option does not appear!
("...(Note: when creating or editing a Page, the Page Template option does not appear unless there is at least one template defined in the above manner.)"
Any input greatly appreciated.