PHP Template breaking structure

Hi,
I’ve been trying to create a new page from an HTML file that works fine as an html but when I put this PHP template code in the file and change it to a PHP file (like when creating a new page from template) it no longer works.

<?php
/*
Template Name: _Project 2 Template
*/
?>

Here are links to the working html page and the non-working php page:

This one is just an html that I put up via ftp
http://fa3444.patternleaf.com/work/ajepkes/wp-content/themes/pixel/project_02_template.htm

This one has the php code and I used the WP “new page” button and applied it as a template.
http://fa3444.patternleaf.com/work/ajepkes/wp-content/themes/pixel/?page_id=27

Can anyone see what the heck is going on here?
Thanks,
-Andy