For the first issue try this:
Just unzip the file - rename the YOUR_TEMPLATE folder to match the name of your custom template (includes/templates/YOUR_TEMPLATE)
Attachment 4623
The second problem seem to be that the image is not resizing to the size of the image setting(s) in admin -> configuration -> testimonial manager.
The default for the image size is 80 x 80 so you could try resizing the image to those dimensions.
Other than that I can't speak to how you would work this out using a TM template.
Bookmarks