Blog Template sites become "localhost" after users create sites

Hello,

I'm attempting to make a template for new users using the Blog Templates plugin but am running into some difficulties. Once I replicate the actions of a user who is creating a site, the original site I used to create the template becomes "localhost" in the "My Sites" menu in my control panel. In addition to that, I cannot visit the site even with a direct entry of the URL. When I directly enter the URL I have a database connection error. When I click on the "localhost" link in the my sites dropdown, it goes to localhost/wp-admin.

As you may have guessed, I'm running my site on a local setup... I've gone through a lot of troubleshooting, including reinstalling my entire network in the root folder (I originally had it running in a sub-directory). I've tried disabling all of the plugins, and nothing seems to relieve this problem.

One thing that's odd is that when I go to CP=>Sites=>All sites, I can see the blogtemplate page listed there. When I click the link to that The Edit site page appears with the info, users themes and settings tabs. The differences I see between this site and other subsites are as follows:
* the http:// is replaced with just :// on the blog template site.
* the checkbox for Update siteurl and home is not checked.
* The only available settings in the settings tab are Ls-db-version and Site Upload Space Quota.

If I click the Update siteurl and home as well checkbox, the http appears before the ://. Then... Everything got worse as I was writing this. I tried to go to my blog template page and it logged me out and now my user name and password aren't working. In addition to that, the lost username and password link goes to localhost/lost-password and is "not found." Now I can't log into my site at all... This has been a bummer.

Thanks,

James