First see if you have "Application Template" tab, when you create a new site, if not please follow this procedure:

Download the ApplicationTemplateCore file: http://www.microsoft.com/downloads/details.aspx?FamilyId=C1039E13-94DA-4D7D-8CAE-3B96FA5A4045&displaylang=en

Extract the WSP file and type the following command lines:

stsadm - o addsolution -filename <path>\ApplicationTemplateCore.wsp (result:Operation completed successfully.)

stsadm -o deploysolution -name Application TemplateCore.wsp -immediate -allowGacDeployment (result: Timer job successfully created.)

stsadmn -o copyappbincontent

 

If the Application Template Core is already deployed, please follow this procedure:

After you have extract the WSP file:

stsadm -o addsolution -filename <path>\Your_WSP_File

stsadm -o deploysolution -name Your_WSP_File -immediate -allowGacDeployment

After that check in the Solution management (Click the Operations tab, and then click Solution management under global configuration.) if your template is deployed (status is shown Globally Deployed), type the follwing command: iis reset.

You are done, one time you go to the Create Site, you will see under the Application Template tab, your template.