"new sharepoint site" broken after template upload

[rrupert]

-please help, what a pain this is, here is the story

1.) from my MOSS 2007 Project 2007 Project Web Access site I followed
steps in this article to create a project workspace template and then
ran 'stsadm -o addteamplate' to promote the template to global status
http://msdn2.microsoft.com/en-us/library/ms503640.aspx

2.) now, I am not able to see any of the built in templates for any
sites in Moss 2007 when I go to create a new site under PWA (the "new
sharepoint site" page 'http://<server>/pwa/_layouts/newsbweb.aspx') it
does not display the images/description or the 'select a template
groups'

3.) I have tried to diagnose what happened and, not being an ASP/web
developer have not gotten too far, this is what I have figured out
a.) I can create new sites from other Sites in the WSS, just not the
PWA instance
b.) the 'newsbweb.aspx' file on the file system is fine (compared to
working lab and no change)
c.) the problem is with the PWA Sites ability to use the 'template
picker', no idea beyond that
d.) I have done a 'view source' from my web browser on the page for
"create a new site", saved and compared the results between a working
lab and the broken and can see these differences:

WORKING
src="/_layouts/images/stsprev.png"
<div
id="ctl00_PlaceHolderMain_InputFormTemplatePickerControl_ctl00_ctl00_FilterTabs"><div
class="ms-templatepickerselected">

BROKEN
src=""
<div
id="ctl00_PlaceHolderMain_InputFormTemplatePickerControl_ctl00_ctl00_FilterTabs"></
div>