New Document Template a NO-GO ...

When trying to establish a Default template within FH's Preferences, the 
Default Ltr document is non-selectable.
 And editing this [default] template and re-saving seems to make it invisible 
to FH's Preference file.
 Any work-arounds or suggestions?

> When trying to establish a Default template within FH's Preferences, the
> Default Ltr document is non-selectable. And editing this [default]
template
> and re-saving seems to make it invisible to FH's Preference file.

Are you using Mac OS X? If so, this may be the reason.

The document you select as a FH template must be a 'Stationery Pad'
document. 
 
There is a bug introduced by Mac OS X. If you save a FH document as a
'FreeHand Template', FH is no longer able to save it in 'Stationery Pad'
format.

Here's the workaround. In the Finder, select the document and Get Info
(Cmd+I). Check the 'Stationery Pad' box. You will now be able to select the
document as a FH template. However, be aware that every time you edit and
save a template file, you must manually re-check 'Stationery Pad'.

Judy Arndt