Clicking this option should open a file browsing window identical to the File Open... window. You browse for and select an .aip file and a new project opens, based on the picked .aip file (as template). In this way the picked .aip file is not opened as project, but used as a template. This is possible, because any .aip file can act as template.
In a team of multiple developers you will need AI templates in a central location (file share). And you don't want to trick AI's local template config by messing around in the registry, and by synchronizing central directories with local directories as was proposed by AI Support: http://www.advancedinstaller.com/forums ... 50&start=0