Works just fine for me using that configuration
So it means that your deployment is not correct. maybe delete your folder and try again?
Does it work when you use the appid i previously gave you?
No the customization of the template that you will do on your computer won't be reflected in the hosted version.
You should only use the downloadable for advanced configuration like if you change the header background or replace the arrows icons. The online version provide some possibility of customization through the settings dialog and we don't recommend you use the downloadable version if you are not comfortable with deploying the application on a webserver. We will continue to add more customization in the hosted version, you will benefits from those features as they are deployed in the next months.