it looks like when you ran the wizard, you selected to have the search page and the results page on the same page, for what you are trying to accomplish, you would need to create a separate search and results page.
you would then apply your template top the results page to add your site design to it, and you could copy the search form fcrom the search page into the head section of your template.
as for why it is not returning results, i don't see an obvious problem in the code, I'll need to troubleshoot directly, see the private message section.