To be honest i had just changed the names servers and this happened within 48hrs of doing this so it may just have been a coincidence that the site went down when i clicked the edit button but i think it unlikely, but my website did go down the following day due to server problems so the changing of nameserves may have been responsible, i can't be 100% sure if it was this or the template.
I'm sure if there is a problem others will post up, it would be nice to hear from those who have successfully updated to this template.....
***Update, the same thing just happened to me again when trying to add phpddaily template