After some discussions with coworkers and a plugin user, I realized the plugin needed a little more documentation on the template directory. I have added some absolute paths to the plugin settings screen for easier reference.
I also added a button to test and make sure that the directory is usable for the plugin. It does an AJAX request to check and see if the folder exists and is readable. After the check it displays either a smiley or an exclamation point in the input field to let you know whether it is good or not.
Again please let me know if you find issues, or have feature requests. I will try to get more updates out soon.