new blog template not copying to new sites

Hi there

I’ve set this up and have it running on my site — but when a new user registers they are not getting a copy of the new site.

At first I figured it was because I had cets_blogs_default plugin running as well … so that has now been deactivated

but every new test site is still using the standard twentyten theme, etc

the template site is here –>

I’m a bit unsure now what to do next … supportive ideas appreciated