diff -Nur smeserver-yum-2.6.0.old/root/usr/lib/yum-plugins/smeserver.py smeserver-yum-2.6.0/root/usr/lib/yum-plugins/smeserver.py
--- smeserver-yum-2.6.0.old/root/usr/lib/yum-plugins/smeserver.py	2020-01-30 22:04:45.015000000 -0500
+++ smeserver-yum-2.6.0/root/usr/lib/yum-plugins/smeserver.py	2020-01-30 22:06:15.524000000 -0500
@@ -288,7 +288,8 @@
         print "Expanding templates"
         for ktemplates in templateslist:
             #print ktemplates
-            if os.path.isfile(ktemplates):
+            mytemplatedir = '/etc/e-smith/templates/' + ktemplates
+            if os.path.exists(mytemplatedir):
                 os.spawnl(os.P_WAIT, expand_template, expand_template, ktemplates)
 
     if len(serviceslist)>0: