Index: site-manage/site-manage-tool/tool/src/java/org/sakaiproject/site/tool/SiteAction.java
===================================================================
--- site-manage/site-manage-tool/tool/src/java/org/sakaiproject/site/tool/SiteAction.java	(revision 22760)
+++ site-manage/site-manage-tool/tool/src/java/org/sakaiproject/site/tool/SiteAction.java	Tue Dec 28 20:35:32 MST 2010
@@ -5094,7 +5094,7 @@
 				if (state.getAttribute(STATE_TEMPLATE_SITE_COPY_CONTENT) != null)
 				{
 					// create based on template: skip add features, and copying all the contents from the tools in template site
-					importToolContent(templateSite.getId(), site, true);
+					importToolContent(templateSite.getId(), site, true, true);
 					try {
 					    site = SiteService.getSite(site.getId());
 					} catch (Exception ee) {
@@ -7354,7 +7354,7 @@
 								site.setTitle(title);
 
 								// import tool content
-								importToolContent(oSiteId, site, false);
+								importToolContent(oSiteId, site, false, false);
 
 							} catch (Exception e1) {
 								// if goes here, IdService
@@ -7746,7 +7746,7 @@
 	 * @param oSiteId
 	 * @param site
 	 */
-	private void importToolContent(String oSiteId, Site site, boolean bypassSecurity) {
+	private void importToolContent(String oSiteId, Site site, boolean bypassSecurity, boolean usingTemplate) {
 		String nSiteId = site.getId();
 		
 		// import tool content
@@ -7797,7 +7797,7 @@
                     }
 						// other
 						// tools
-					else {
+					else if (!(toolId.equalsIgnoreCase("sakai.iframe") && usingTemplate)){
                         transferCopyEntities(toolId,
 								oSiteId, nSiteId);
 					}