<blockquote>So if I want to use the Avian II template I would choose an Avian II file, correct and not the avian.zip file, correct?
</blockquote>
You would use which ever style of the avian ii you wanted ie avian ii m .zip
<blockquote>What do you do with the quick start files? </blockquote>
The quick start sets up the entire joomla install not just the template. It populates the database with all the content /components etc required to get you looking like the demo.
<blockquote>And what do I do with all those .psd files in the avian source file?</blockquote>
You don’t have to do anything with the .psd files they are source files which means they are for you to use if you wish to change any of the images. They are photoshop files.
Good Luck
Kiwidesign