Blocktheme Drupal issues

Getting this to work properly can sometimes be a little frustrating due to the paradoxically simple yet confusing instructions provided.

Here's how to do it properly once the module is enabled:

1. Design your block template and save it as blocktheme-mytemplate.tpl.php in the theme's folder.

2. Go to the blocktheme options and enter the name of the themed block in the following format:
mytemplate|My great template

3. Go to the block you have styled for and select the appropriate option in the blocktheme settings.

Easy as that!