In the updated Joomla 3.2 Template Manager: Customise Template you can edit files, create files and folders and even create overrides directly inside your admin area. Overrides created in this edit screen are Template overrides and not to be confused with Layout Overrides !!!
Template overrides override the core 'layout views' of Components, Modules and the files of /layout/joomla/.
Layout overrides create new layout views for Components and Modules. And can be selected (in Admin menus and options) as alternative layout views instead of the core Component and Module layout views. For Layout Overrides please see Layout_Overrides_in_Joomla
To edit or copy a template's files with the Template Manager: Customise Template you must first access the Template manager.
You will now see the Template Manager screen.
Note: If you do not see Template Manager listed as an option on the Extensions menu, then it is most likely because you are not logged in as a Super Administrator. Only Super Administrators will see this menu item.
There are two methods available for accessing the Template Manager: Customise Template. The Customise Template interface allows for editing the actual code found in the template files, creating template overrides and template file manipulation.
Styles column refers to changing the available parameters of a template, such as color, font-color, logo, etc. These are dependent on the parameters a template maker made available and are a convenience for quick changes. Template - column refers to editing the actual template files.
To access the Template Customise feature:
You should now be looking at the image below, Template Manager: Customise Template.
Click any file and you'll be able to edit it directly in the browser.
When you're inside the Template Manager, you'll see a toolbar like the one below:
Creating a copy like this could be very useful for testing purposes. It used to be much more difficult.
One of my favorite features of the new Template Manager is how easy it makes overrides.
Previously it was almost impossible to get a clean overview of what override possibilities were available on a Joomla site.
This new Template Manager was a Google Summer of Code 2013 project.
The coder was Ram Tripathi, a student from Delhi. He formed a very successful partnership with his mentor Ken Crowder, a long-time Joomla developer. Congrats to both of them and to all of this year's Google Summer of Code team.