WordPress 3.3.1 Page template not showing in admin area

First of all, change Template Name=> to Template Name:. Also, when you say the themes root do you mean wp-content/themes? If so, keep all your files in a folder specific to your theme i.e wp-content/themes/myTheme.

If you’ve done that, make sure you’ve got a stylesheet in your theme and that your permissions are set correctly on the themes folder. You should need 755 on your theme.

You don’t give away how familiar you are with WP themes so I’ll just add a few links that might be useful;