Reed --
Assuming the template is an enterprise template, complete the following
steps:
1. Log into PWA with administrator permissions
2. Click the Admin menu
3. Click the Clean up Project Server database link
4. Select the "Projects and To-Do Lists" option
5. Select your template from the list of enterprise projects
6. Select the "Delete the SharePoint team Web site for the specified
project" option
7. Click the Delete button
Hope this helps.