I tried your Quickstart and what ever changes I made to the template nothing happened. I created a new server and installed Joomla3.2.2 from fresh (no quickstart). Installed the Takai template and when you go to display the page you get:
The template for this display is not available. Please contact a Site administrator.
I was really looking forward to using it but after a day of messing around I have lost faith.
The worst bit is I normally design my own templates but for this particular site I fancied getting a pro designed version (albeit free). That will teach me!!

Actually this template has more than 1700 downloads just for Joomla! 3.x and we have never experienced this issue before.

We will look into the issue and let you know.

PS. the:is most likely related to a caching issue. (Quite common if you are using APC cache) or you accidentaly installed the update package and not the full template package.

Thank you for your prompt reply, much appreciated. With reference to the new site, I uninstalled the template and made sure the standard Takai template (not update) was installed. I can confirm it appears to be working fine. What is the upgrade template for?

This post will make it clear for you: nuevvo.com/documentation/general-resources/installation/item/59-installing-vs-upgrading

Long story short, one is a full Joomla! template while the other i s only an update package which requires the template to be installed since it does include index.php, custom.css and custom.js