For a quick workaround you can rename the sproc to Smith_AddEmailTemplateSC. Then you will be able to add templates to the database and the emails will work.

You can also run thiis script in Host|SQL (paste code, check Run As Script, then execute)

-- remove bad sproc
IF  EXISTS (SELECT * FROM dbo.sysobjects WHERE id = OBJECT_ID(N'{databaseOwner}{objectQualifier}Smith_Smith_AddEmailTemplateSC'))
 drop procedure {databaseOwner}{objectQualifier}Smith_Smith_AddEmailTemplateSC
GO
-- remove renamed sproc
IF  EXISTS (SELECT * FROM dbo.sysobjects WHERE id = OBJECT_ID(N'{databaseOwner}{objectQualifier}Smith_AddEmailTemplateSC'))
 drop procedure {databaseOwner}{objectQualifier}Smith_AddEmailTemplateSC
GO

-- add proper sproc
CREATE PROCEDURE {databaseOwner}{objectQualifier}Smith_AddEmailTemplateSC
@TabModuleID int,
 @Name nvarchar(50),
 @Subject nvarchar(255),
 @Template ntext,
 @PortalID int
AS

INSERT INTO {objectQualifier}Smith_EmailTemplateSC (
 [TabModuleID],
 [Name],
 [Subject],
 [Template],
 PortalID
) VALUES (
 @TabModuleID,
 @Name,
 @Subject,
 @Template,
 @PortalID
)
select SCOPE_IDENTITY()
GO

Now you should be able to add email templates and the emails will not be blank.

I hope this is of some help to you.

sorry. it took me a while to try this out.  Renaming the SP worked however, the Shipping confirmation email came up blank. 

I did not customize anything for the Ship Email Template except changed the Subject.  I am new to this shopping cart. How would I troubleshoot this?