On the index page, i see the following left over template code at line 16:
<!-- TemplateBeginEditable name="head" --><!-- TemplateEndEditable -->
open the index page in a text editor like Text Pad to remove that code.
The index page has it's own menu, to make edits to the index page menu, you should edit the index page.
If I delete the Template code in the header of the index page via another text editor other than Dreamweaver, then DW will not prompt me to save the index.php page as a template page?