If you're going to print it, then 200 dpi is great. 300 dpi is overkill. The eye cannot see that much difference, and the file size will be much smaller at 200.
For screen resolition, as in dvds and cds, 72 is fine and the template can be as small as 720 by 550. The earlier templates that came with SBM are a great example. There is a post here somewhere where you can get all of those.
Hope this helps. But hang around, and one of the gurus can help you with more info.
ps: The yellow taby looks just like my cat. Great show!
Marion , Steve, Moonbeam, Ladybug, Wolvsie, Fourfoxes, Vanessa, PinkLollipop and Winnie49 are my buddies!!!