The Templates rollout gives you a list of material types to choose from. A template is simply a set of preset parameters for the Physical Qualities rollout, which approximates the kind of material you want to create, and gives you a starting point. Once you choose a template, you can adjust its settings and add maps to enhance realism and improve the material's appearance.
The templates do not affect the Diffuse Color on the Physical Qualities rollout, only the numeric settings.
Interface

- Template drop-down list
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Chooses the kind of material you are designing. Each template provides preset values for the various material parameters.
These are the material templates provided with 3ds Max. The purpose of most templates is clear, so the table doesn't comment on all of them.
Template Comments Ceramic Tile - Glazed Fabric Glass - Clear Glass - Translucent Ideal Diffuse A neutral white material Masonry A good base for a diffuse map Metal Shiny and reflective Metal - Brushed Less shiny Metal - Flat Even less shiny Metal - Polished Highly shiny Mirror Completely shiny Paint Flat Another neutral white material Paint Gloss Also white, but shiny Paint Semi-Gloss Also white, only slightly shiny Paper Paper - Translucent Plastic Stone A good base for a diffuse map Stone Polished Has a bit of shininess; also a good base for a diffuse map User Defined Neutral; a good base for a diffuse map User-Defined Metal Somewhat shiny; also a good base for a diffuse map Water Completely clear and shiny Wood Unfinished Neutral; a good base for a map Wood Varnished