Hi toshmahorey,
And welcome

On SMF 1.1.2 to install templates, upload the template in its own directory under the Themes/ directory and then go to Configuration -> Themes and Layouts. At the bottom, you can enter the path on the server to your new theme and hit 'install' and it should be installed.
A great place for themes is the SMF Them Site here:
http://custom.simplemachines.org/themes/index.phpGood luck!