Web Design questions relating templates and how to program them before i venture into the known

Yes that is what it means.

You create a graphic of what your page will look like, saved as a psd file.
From it you take out all the parts you need and put them into a directory.

Here is one example to code a basic Logo from a psd file.
You create a "css" file which sets the style and properties for the elements.

Code:

/* ----------LOGO STYLES---------- */
#logo { 
float: left; /*floats our logo left*/
height: 37px; /*gives our logo a height of 37px same as our logo image*/
width: 270px; /*sets our logo div's height to 270px same as our logo image*/
} 

Then you create a "html" file which tells the browser what to get from the "css" file, where to put it, how to display it.

Code:

<div id="logo"><!--LOGO STARTS-->
<img src="your_images_directory/logo.png" alt="Welcome To Your PROject" /> 
</div><!--LOGO ENDS-->

Basically you have 3 items;
1. a directory with your graphics
2. a style.css fie
3. a somefilename.html
again the psd file is the visual graphic you used to create what was in your head. You then cut out the parts you needed and placed them in a directory for use with the "css" and "html" files.