Not to editorialize too much, but templates are essentially a nightmare in Magento.
It is best if you disable the cache while you are modifying the template so that your results are shown immediately.
Before you go live with the site,
- disable system cache by going to Administration Panel and navigating to System | Cache Management.
- Enable the check boxes next to Layouts, Blocks HTML output and Translations
- Under Actions, select Disable
- Click Submit.
All Cache Types should have a red bar in the status area that reads ”DISABLED.” This ensures that you see the changes in your live site.