Doreen,
To clarify for you and anyone else, when clicking the browse button in the Publishing Wizard, it opens up to a local directory. The screenshot in the book has it opening a SharePoint location with a list of links entitled "All Site Content". Form Templates being one of those links. When I manually type the URL of the SharePoint site into the browse dialog, I get a message: "You can't open this location using this program. Please try a different location."
I understand I can probably upload the template manually through the Central Admin page, which I will try now, but when something doesn't work as in the example I have to question whether I have a configuration setting wrong or something similar.
Thanks again.