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I believe he's saying that if you already have xoopsgallery installed and you upload this fix, you'll need to refresh the templates in order to see the change in the display. I'm not positive how templates work on the inside, but I can tell you that "SMARTY" is XOOPS template manager, and when a module is installed, smarty takes all the templates in the module/templates folder, copies them to a new location, and references them in the database. This means that if you try to simply upload a new template it won't show up (since smarty's templates are stored and referenced elsewhere). So, in order to change a template, you either have to:
a) upload it the normal way, then update the module (I'm pretty shure this should do it), or
b) go into the template manager (admin->System->templates) and modify the "Gallery" template file using the utility found there... of course, in order to modify the templates using the online tool, you'll need to clone the default template (you can modify ANY template except the default one).
Hope I did more help than confuse!
Keith