Templates

I know I've seen this post before but there was no resolution so I'm posting it again. It's rather a large problem.

It doesn't seem to matter what I name the templates.xml file or where I place it as the editor just ignores it. Heck, I've even deleted the xml file and all related image files and I always get the same stock templates. I've also emptied my cache and restarted the browser. I can't figure out where the editor is getting it's information for the template function button. Changing the location of the xml file in the config has no effect either.