In the My Projects portlet, click 
Project Explorer.
In the action bar, click 
New.
The New Project dialog box appears.
Select Create template-based project.
Click Browse.
The Choose a Project Template dialog box appears.
Select the template on which you want the project to be based.
Click Finish.
You are returned to the New Project dialog box.
In the Project
Start Day box, specify when your project should begin.
Click 
to select the date. You can also click the date-shift calculator to determine how
dates will be shifted.
In the Name box, type no more than 100 characters to name the project.
From the Language
drop-down list, choose the default language for the project from the list.
Collaboration uses the language information when indexing the project
for searching.
As an optional step, in the Description
box, type no more than 1,000 characters to describe the project.
The description is indexed for searching.
As an optional step, click Select
Image to select an image
to place on the Project Overview page. If the template already has an
image attached, click Edit Image
to select a different image. Click 
to remove the image.
Select the status of the project:
Select if you want to manually set the status of the project or have Collaboration automatically compute the status based on the status of the project's task lists.
To manually set the status of the project:
From the drop-down list, select the portion of the project that is completed.
As work on a project progresses, the Project Leader should change the status of the project.
To automatically compute the status of the project based on the status of the project's task lists, select Compute from Task Lists.
Select the risk indicator for the project. It can be:
No Risk
Moderate Risk
High Risk
As an optional step, select the check box and
type a number in megabytes if you want to enforce a maximum size for the
project.
Uploading a document fails if the project size exceeds the maximum
limit.
As an optional step, click Invitees
to invite users to the project.
The Add Invitees dialog box appears.
Select the users that you would like to invite to the project.
Click OK.
You are returned to the New Project dialog box.
Click Roles and Permissions, then add portal users, groups, and community members to project roles and change the default security settings for each project role. For more information, see Roles and Permissions (Project).
Click Functional Areas, then check the boxes next to the functional areas you wish to appear in the project. For more information, see Functional Areas.
Click Finish.
After Collaboration copies the project template to the new project,
a dialog box appears that provides statistics about the template's objects
and whether or not they successfully copied to the new project.
After you have analyzed the statistics, click
Close.
The new project appears in the Project Explorer.