Templating not working

System

After installing SP2b, Templating which was working fine earlier is not working now. We can't see the 'New Data Record' in the menu. (Editing a templated file opens in a text editor, 'Change Templating UI' is not there in View menu, so it appears that the templating piece did not start up). We're on TeamSite 5.5.2/Solaris 2.8.

Is Templating completely bundled within TeamSite, in other words, is everything needed for Templating to work inside the webdesk webapp? What is webdesktst.war btw?

I can't find any log file that has useful info.. which log should I look at for this problem?

We have this in the iw.cfg file.
[teamsite_templating]
data_root=templatedata
pretty_print_dcrs=true
enable_formapi=true

And the templating.cfg is at IW-HOME/local/config.

Appreciate any input.

Thanks