Best way to work on a new template

What is the best way to work on a new template while the existing template is still active on the store. I tried making a copy of the whole store in a seperate directory, changed all the paths etc, but when i change the template in the new copied version, it changed it for the main version also. Obviously the template is stored in the database. I don't really want to make another database. Is there another way to so this?

Templates are stored in files, no database here.

I understand that but please read what I did carefully. When I changed the template running the copy, it changed the template running from the main directory also. I want to work on the template without effecting the live store.

The only way to do this is to transfer your store onto your computer. Once that template is done you will have to transfer your store back to your host site.

nomad

Yup, that is the best way. Either create a test site on your server, or create it locally on your computer.

Obviously the template is stored in the database. I don't really want to make another database. Is there another way to so this?
The template is file based but what template being applied is in the DB.

You can create another test install with it's own DB and load a copy of your current DB to it.

Thanks. I pretty much came to that conclusion. I was just hoping there was some tricky way to do it.

Even if there is, are you willing to do some "tricky" things on your live site?
Working on a new template some times requires modifying core files as well. It's the best that you work on a test site first.

no. thats why I made a copy and was working on that. Now I know I need to make a copy of the database also and not use the live data base.