To get the best experience with this template, you need to set up your site correctly. The place where you store the local copy of your files should be structured in the same way as the server.
Assuming you are starting from scratch on a Windows computer and you store your local files on your C: drive...
My Documents that will represent your server eg: my-web-files.C:\Documents and Settings\username\My Documents\my-web-files\template-assets folder goes inside my-web-filesTemplates folder goes inside my-web-filesIf your site is the root site on the server (eg: http://www.unimelb.edu.au/)
template-assets-custom folder also goes inside my-web-filesmy-web-filesIf your site is in a subfolder on the server (eg: http://www.unimelb.edu.au/mysite/)
my-web-files of the same name as those on the server, (eg: my-web-files/mysite).template-assets-custom folder will go in there, (eg: my-web-files/mysite/template-assets-custom).my-web-files/mysite
Obviously, mac users will not have a My Documents folder, but everything else is the same.
There is a slight risk that a maintainer using an incorrectly set up Dreamweaver site may access files at the wrong location on a server, but correctly set server permissions should ensure that such users do not have write access to the wrong parts of a server.